REG - Air China Ld - Corporate Social Responsibility (ESG) Report 2023
26/04/2024 07:00
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RNS Number : 1831M Air China Ld 26 April 2024
Air China Limited
2023 Corporate Social Responsibility (ESG) Report
Contents
About This Report (#_Toc164798699) ........................................
(#_Toc164798699) 1 (#_Toc164798699)
Chairman’s Statement (#_Toc164798700)
..................................... (#_Toc164798700) 3 (#_Toc164798700)
ESG Statement from Board of Directors (#_Toc164798701)
....................... (#_Toc164798701) 5 (#_Toc164798701)
About Air China (#_Toc164798702) ..........................................
(#_Toc164798702) 6 (#_Toc164798702)
2023 Highlights of ESG Performance (#_Toc164798703)
......................... (#_Toc164798703) 10 (#_Toc164798703)
Striving Hard for Higher Efficiency and Effectiveness (#_Toc164798704)
........... (#_Toc164798704) 11 (#_Toc164798704)
Honors and Awards (#_Toc164798705) ......................................
(#_Toc164798705) 12 (#_Toc164798705)
Responses to UN 2030 Sustainable Development Goals (SDGs) (#_Toc164798706)
.... (#_Toc164798706) 13 (#_Toc164798706)
1. (#_Toc164798707) (#_Toc164798707) Sustainable Development
Management (#_Toc164798707) ................... (#_Toc164798707) 19
(#_Toc164798707)
1.1 (#_Toc164798708) (#_Toc164798708) Responsible Governance
(#_Toc164798708) ........................... (#_Toc164798708) 19
(#_Toc164798708)
1.2 (#_Toc164798709) (#_Toc164798709) Comprehensive Risk Management
(#_Toc164798709) ................... (#_Toc164798709) 30 (#_Toc164798709)
1.3 (#_Toc164798710) (#_Toc164798710) Advancing Technological Innovation
(#_Toc164798710) ................. (#_Toc164798710) 37 (#_Toc164798710)
1.4 (#_Toc164798711) (#_Toc164798711) Digital Transformation
(#_Toc164798711) ............................ (#_Toc164798711) 39
(#_Toc164798711)
1.5 (#_Toc164798712) (#_Toc164798712) Intellectual Property Rights
Protection (#_Toc164798712) ............... (#_Toc164798712) 41
(#_Toc164798712)
1.6 (#_Toc164798713) (#_Toc164798713) Responsible Supply Chain
(#_Toc164798713) .......................... (#_Toc164798713) 42
(#_Toc164798713)
2. (#_Toc164798714) (#_Toc164798714) Safety Development
(#_Toc164798714) ................................... (#_Toc164798714) 47
(#_Toc164798714)
2.1 (#_Toc164798715) (#_Toc164798715) Safety Management (#_Toc164798715)
............................... (#_Toc164798715) 47 (#_Toc164798715)
2.2 (#_Toc164798716) (#_Toc164798716) Employee and Passenger Safety
(#_Toc164798716) ..................... (#_Toc164798716) 52 (#_Toc164798716)
2.3 (#_Toc164798717) (#_Toc164798717) Safety Culture (#_Toc164798717)
................................... (#_Toc164798717) 54 (#_Toc164798717)
3. (#_Toc164798718) (#_Toc164798718) Green Operations
(#_Toc164798718) .................................... (#_Toc164798718) 58
(#_Toc164798718)
3.1 (#_Toc164798719) (#_Toc164798719) Improvement of Environmental
Management System (#_Toc164798719) .... (#_Toc164798719) 58 (#_Toc164798719)
3.2 (#_Toc164798720) (#_Toc164798720) Addressing Climate Change
(#_Toc164798720) ........................ (#_Toc164798720) 59
(#_Toc164798720)
3.3 Promoting the Green Operation Model (#_Toc164798721) ................
(#_Toc164798721) 67 (#_Toc164798721)
3.4 Corporate Green Responsibility (#_Toc164798722) ......................
(#_Toc164798722) 73 (#_Toc164798722)
4. Quality Service (#_Toc164798723) ........................................
(#_Toc164798723) 75 (#_Toc164798723)
4.1 Service Quality Management (#_Toc164798724) ........................
(#_Toc164798724) 75 (#_Toc164798724)
4.2 Safeguarding the Rights and Interests of Passengers (#_Toc164798725)
...... (#_Toc164798725) 76 (#_Toc164798725)
4.3 Sincere Service (#_Toc164798726) ....................................
(#_Toc164798726) 80 (#_Toc164798726)
5. Employee Development (#_Toc164798727) ..................................
(#_Toc164798727) 85 (#_Toc164798727)
5.1 Employment and Employees’ Rights and Interests (#_Toc164798728)
....... (#_Toc164798728) 85 (#_Toc164798728)
5.2 Employee Training and Development (#_Toc164798729) ..................
(#_Toc164798729) 88 (#_Toc164798729)
5.3 Occupational Health and Safety (#_Toc164798730) ......................
(#_Toc164798730) 91 (#_Toc164798730)
5.4 Incentives and Care (#_Toc164798731) ................................
(#_Toc164798731) 93 (#_Toc164798731)
6. Community Responsibility (#_Toc164798732) ...............................
(#_Toc164798732) 97 (#_Toc164798732)
6.1 Rural Revitalization (#_Toc164798733) ................................
(#_Toc164798733) 97 (#_Toc164798733)
6.2 Neighbourhood Assistance (#_Toc164798734) .........................
(#_Toc164798734) 101 (#_Toc164798734)
6.3 Supporting the Community (#_Toc164798735) .........................
(#_Toc164798735) 102 (#_Toc164798735)
6.4 Jointly Promoting Industry Development (#_Toc164798736) ..............
(#_Toc164798736) 106 (#_Toc164798736)
6.5 Volunteer Activities (#_Toc164798737) ...............................
(#_Toc164798737) 108 (#_Toc164798737)
Outlook for 2024 (#_Toc164798739) (#_Toc164798739)
....................................... (#_Toc164798739) 111
(#_Toc164798739)
Table of Major Indicators (#_Toc164798740)
................................ (#_Toc164798740) 112 (#_Toc164798740)
HKEX ESG Indicator Index (#_Toc164798741) ...............................
(#_Toc164798741) 114 (#_Toc164798741)
GRI Index (#_Toc164798742) .............................................
(#_Toc164798742) 118 (#_Toc164798742)
Major Laws, Regulations and Corporate Policies (#_Toc164798743)
.............. (#_Toc164798743) 123 (#_Toc164798743)
Third-Party Assurance (#_Toc164798744) ...................................
(#_Toc164798744) 131 (#_Toc164798744)
Feedback Collection (#_Toc164798745) .....................................
(#_Toc164798745) 134 (#_Toc164798745)
About This Report
This report presents Air China Limited's performance in 2023. In accordance
with the requirement for social responsibility stipulated by the SASAC of the
State Council, we leverage our strengths in core airline operations, and
continuously strengthen our social responsibility management and disclosures.
It is demonstrated in the report that our commitment and actions in key areas
such as implementing national strategies, ensuring safety development,
addressing climate change, practicing green development, enhancing product
responsibility, and focusing on employee development and community welfare. We
hope you can feel our sincerity and commitment through this report, and thank
for the continuous support of our reform and development.
§ Reporting Period
This report covers the period from 1 January to 31 December in 2023.
§ Scope of the Report
This report is primarily about Air China Limited, but also involves its
branches, operating units, supporting units, and main subsidiaries such as
Aircraft Maintenance and Engineering Corporation (Ameco), Shenzhen Airlines
Company Limited (Shenzhen Airlines), Shandong Aviation Group Company Limited
(Shandong Aviation Group Corporation), Beijing Airlines Co., Ltd. (Beijing
Airlines), Dalian Airlines Co., Ltd. (Dalian Airlines), and Air China Inner
Mongolia Co., Ltd. (Inner Mongolia Airlines). Among them, Shandong Aviation
Group Corporation has been included in the scope of the report in 2023 for the
first time.
§ Basis of Preparation
This report is prepared in accordance with relevant requirements, including
the Guidelines to the Central State-owned Enterprises Directly on Fulfilling
Corporate Social Responsibilities，the Measures for the Compliance Management
of Central Enterprises，the Work Plan for Improving the Quality of Listed
Companies Held by Central Enterprises, and the Study on ESG Special Report
Compilation for Listed Companies Controlled by Central Enterprises released by
the SASAC of the State Council, the Notice on Strengthening the Social
Responsibility of Listed Companies, the Guide for Environmental Information
Disclosure of Listed Companies and the Guide No. 1 on the Application of
Self-Regulation Rules for Listed Companies - Standard Operations released by
the Shanghai Stock Exchange (SSE), and the Environmental, Social and
Governance Reporting Guide of the Stock Exchange of Hong Kong Limited (HK-ESG
Reporting Guide), with reference to the standards and requirements such as
Global Reporting Initiative Sustainability Reporting Standards (GRI Standards)
of the Global Sustainability Standards Board (GSSB), GB/T36001 Guidance on
Social Responsibility Reporting and other guidelines for the aviation service
industry.
§ Release Cycle
This is our 16th consecutive social responsibility report, which we release
annually. The Chinese version of the previous year's report is released in
March each year, and the English version is released in April.
§ Sources of Data
All the financial data referred in this report, applying to China Accounting
Standards for Business Enterprises, is extracted from the audited annual
reports of Air China Limited, while the other data comes from official
internal documents and relevant statistics of Air China Limited.
§ Abbreviations
In this report, "the Company", "Air China"or "we" refers to Air China Limited,
while "the Group" refers to Air China Limited and its holding subsidiaries,
and "CNAHC" refers to China National Aviation Holding Corporation Limited.
§ Accessibility of the Report
This report is prepared in both Chinese and English, and should there be any
discrepancy in meaning between the two versions, the Chinese version shall
prevail. Electronic copies of this report in both Chinese and English are also
available for downloading from the Company's website. If you wish to acquire a
printed version or raise suggestions and/or comments on this report, please
contact us at:
Website: https://www.airchina.com.cn/en/investor_relations/csr.shtml
Address: No. 30, Tianzhu Road, Airport Industrial Zone, Shunyi District,
Beijing, China
Contact unit: Office of the Board
Tel: 86-10-61462152
Email: baixiao@airchina.com (mailto:baixiao@airchina.com)
Chairman's Statement
The year 2023 was the kick-off year for fully implementing the guiding
principles from the Party's 20th National Congress, as well as a milestone for
delivering the 14th Five-Year Plan. Over the past year, the Group has been
actively responding to the national calls, focusing on the priority of
high-quality development, coordinating safety and development, and actively
fulfilling ESG responsibilities, in a bid to promote sustainable development
and contribute to the new journey of building a modern socialist country in
all aspects.
Insisting on safety development and fulfilling responsibility for safety.
Faced with complex environment and severe challenges, the Group has always
regarded safety as the primary political task and top priority and fully
practiced the holistic approach to national security, thus maintaining stable
situation of work safety. We strictly implemented safety responsibilities,
firmly established the concept of safety development, resolutely implemented
the Work Safety Law of the People's Republic of China and the "Fifteen
Measures For Work Safety" issued by the Work Safety Commission of the State
Council, and continuously strengthened the organization and leadership of
safety work. We solidly carried out key work, conscientiously implemented the
safety supervision and inspection requirements of the Civil Aviation
Administration of China, seriously carried out rectification, improve
long-term mechanisms, and enhanced the overall level of safety management. We
effectively focused on key links, conducted special risk assessments based on
the characteristics of each stage of market recovery and seasonal
environmental changes, and ensured that production support capabilities match
the actual operation of flights. In 2023, the Group successfully guaranteed
major transportation tasks such as the Chengdu FISU World University Game, the
Hangzhou Asian Games, the "the Belt and Road" Summit Forum, and earthquake
relief, etal.
Embracing low-carbon development and fulfilling environmental
responsibilities. Acting on the concepts of green development and ecological
civilization, Air China is committed to doing its bit for the Beautiful
China initiative by actively laying out and implementing the green development
action plans. We specified our overall targets of our efforts to achieve the
carbon peaking and carbon neutrality. We attached great importance to the
risks and opportunities posed by climate change, and scientifically planned
the process to reduce GHG emissions. We deepened the green operation model,
implemented the responsibility of green development, and protected the
ecological environment and biodiversity. Taking energy conservation and
consumption reduction as the primary mission, we promoted the special action
of reducing plastic and waste, adhered to the concept of low-carbon and green
resource management, and strived to create a resource-conserving and
environmentally friendly business.
Adhering to the people-centered development and shouldering responsibilities
for customers and employees. Air China puts customers and employees in the
forefront, emphasizing responsibility management, brand service, and employee
development. We actively advance the construction of service standards and
reshape the top-level design of service standard management; We focus on
creating excellent service products and consistently enhance the service brand
image; We strive to improve service quality management capabilities and
enhance passengers' service experience; We speed up the digital transformation
of services and steadily improve the level of service digitization. We respect
the democratic rights and interests of employees, improve market-oriented
employment mechanisms, build talent exchange platforms, and strengthen
employee health management, pursuing long-term development of employees and
enterprises together.
Engaging in social welfare and honoring social responsibility. Air China fully
implements the strategic plans for rural revitalization and continuously
optimizes the "Aviation+" assistance model, focusing on the revitalization
work of industry, talent, culture, ecology, and organization. Our efforts
includes assisting our targeted support areas of Zhaoping County in Guangxi
Province, and Sonit Right Banner in Inner Mongolia to consolidate the results
of poverty eradication and effectively promote rural revitalization in an
all-round way. We acted as a responsible state-owned enterprise in delivering
air transportation support for disaster relief efforts of earthquake stricken
areas in Türkiye, Hangzhou Asian Games, Chengdu FISU World University Games,
Davos Forum and other events. We actively participated in the aid and
assistance for countries of the Belt and Road Initiative (BRI), and launched
or resumed the BRI-related airlines. Upholding the voluntary service spirit of
"dedication, friendship, mutual assistance, and progress," we actively assumed
corporate social responsibility by carrying out activities such as CNAHC Blue
Sky Classroom, and providing voluntary service for the Hangzhou Asian Games
and the Asian Para Games.
Strengthening the leadership of Party building and ensuring high-quality
development. Fully implementing the guiding principles of the Party's 20th
National Congress, Air China strengthens the leadership of the Party in
corporate governance and the construction of management for talent teams,
firmly and deeply promotes full and rigorous Party's governance, and strives
to create a clean and positive political environment, providing a strong
guarantee for a high-quality development and the construction of a world-class
enterprise.
The year 2024 marks the 75th anniversary of the founding of the People's
Republic of China and an important year for the Group to build a world-class
enterprise. Air China will adhere to the underlying principle of seeking
progress while maintaining stability, implement the new development concept
fully, accurately, and comprehensively, make efforts to accelerate the
construction of a new development landscape, and coordinate high-quality
development and high-level safety. We will enhance core functions, improve
core competitiveness, and continue to promote sustainable development,
fulfilling corporate social responsibilities and responding to public
expectations with practical actions, and making new contributions to the
building of a country with a strong transport industry and a new chapter in
civil aviation.
Ma Chongxian
Chairman
Air China Limited
ESG Statement from Board of Directors
Air China's Board of Directors is the highest responsible and decision-making
body for ESG affairs. It integrates the concept of sustainable development
into the decision-making process of the Company's major issues, listens to
reports from ESG implementation units at regular communication meetings,
supervises affairs concerning ESG that may affect the Company's business or
operation, shareholders, and other stakeholders, to ensure the consistency
between ESG concepts and corporate strategies. The Board is responsible for
approving the identification of stakeholder communication results and
significant agenda deliberation outcomes, and for reviewing and approving the
Company's corporate social responsibility and ESG reports .
In 2023, in accordance with the regulatory requirements of the SASAC of the
State Council about improving the quality of listed companies held by
state-owned enterprises, Air China continued to improve the ESG
responsibilities and work content of the Strategy and Investment Committee of
the Board of Directors, in a bid to promote the effective connection and
implementation of ESG supervision and the Company's ESG work.
The professional committees under the Board of Directors report to the Board
on such issues as safety management, service optimization, risk compliance,
investment and financing, ensuring the continuous and stable progress of
related work.
The Board has established a Corporate Social Responsibility (CSR) Leadership
Panel, which is responsible for formulating and approving CSR strategy, and
guiding the implementation of CSR work. The Office of CSR Leadership Panel, as
the primary executing body of Air China's CSR work, is responsible for
formulating annual CSR plans, coordinating the implementation of CSR plans and
promoting the progress of related work.
This report fully disclosed the progress and outcomes of Air China's ESG work
in 2023, which was reviewed and approved by the Board of Directors on March
28, 2024.
About Air China
1. Company Profile
Air China Limited was founded in 1988, formerly known as Air China
International Corporation. In October 2002, Air China International
Corporation integrated the air transportation resources of China Southwest
Airlines and China National Aviation Company to form a new entity. On
September 30, 2004, Air China Limited was founded in Beijing. The Company was
then listed both in Hong Kong and London on December 15 of the same year,
before listed in the domestic A-shares market on August 18, 2006.
Air China is the only flag-carrier aviation company in China, and a member of
the world's largest airline alliance Star Alliance, the official aviation
transportation partner of the 2008 Beijing Olympics and Paralympics and the
2022 Beijing Winter Olympics and Paralympics. Air China takes the lead among
domestic airlines in passenger transportation and other related service,
providing important international and domestic transportation service such as
emergency flights, and charter flights for VIPs and leaders of foreign
countries. In 2023, according to the assessment of the World Brand Lab, Air
China got a brand value of RMB 235.162 billion, the highest among Chinese
civil aviation companies.
Structure of Air China Limited
Management Support Division Business Management Units Branches Major Subsidiaries
Stations Management Department Training & Development Department Southwest Branch Air China Shantou Industrial Development Company
Product Service Department Cabin Service Department Zhejiang Branch Chengdu Falcon Aircraft Engineering Service Co., Ltd.
Operation Standards Department Ground Service Department Chongqing Branch Zhejiang Air Services Co., Ltd.
Assets Management Department Commercial Committee Tianjin Branch Beijing Golden Phoenix Human Resources Co., Ltd.
Flight Technology Management Department Flight Crew Department Shanghai Branch Air China Import and Export Trading Co., Ltd.
Aviation Safety Management Department Operation Control Centre Hubei Branch Air China Development Corporation (Hong Kong) Limited
Finance Department Engineering Maintenance Department Wenzhou Branch Air Macau Company Limited
Human Resources Department Hub Development Department Tibet Branch China National Aviation Company Limited
Strategy and Development Department Centralized Procurement Department Guizhou Branch China National Aviation Finance Co., Ltd.
Administration Office Air Marshall Department Guangdong Branch Air China Inner Mongolia Co., Ltd.
Labor Union Office Information Management Department Xinjiang Branch Dalian Airlines Co., Ltd.
Discipline Inspection Office Logistics & Support Department / Retiree Service Office / Leading Group Beijing Airlines Co., Ltd.
Office of Epidemic Prevention & Control
Leading Group Office of Maintaining Integrity and Combating Corruption Shandong Aviation Group Company Limited
Corporate Culture Department Shenzhen Airlines Company Limited
Leading Group Office of Deepening Reform/ Office of Policy Research Aircraft Maintenance and Engineering Corporation
Office of the Board
Aviation Security Department
Audit Department
Legal Department
2. Fleet Structure
As of December 31, 2023, the Group had a total of 905 aircraft of various
types, mainly Boeing and Airbus series, the average age of which was 9.36
years.
Aircraft type Model Quantity
Airbus A320 351
A330 57
A350 30
Boeing B737 387
B747 10
B777 28
B787 14
COMAC ARJ21 24
Business jets Business jets 4
3. Route Network
As of the end of 2023, Air China had 336 domestic routes, covering 123
domestic cities; and had 94 international and 12 regional routes, covering 36
countries, 55 international cities, and 3 regional cities.
4. Philosophy of Responsibility
Vision:
A leading airline in the world.
Mission:
Putting safety at the forefront
Delivering 4C-based services
Achieving steady growth
Helping our employees pursue a successful career
Fulfilling our Responsibilities
Values:
People orientation, Assumption of responsibility, Resolve to get ahead, Loving
to fly
Brand Positioning:
A professional, trusted airline with world-class standards and a unique
Chinese flair.
5. The 14th Five-Year Plan
1 Goal Advancing high-quality development, Accelerating the construction of a
world-class aviation enterprise
4 Strategies Hub network strategy
Passenger and cargo flights linkage strategy
Cost advantage strategy
Brand building strategy
5 Capabilities Continuously enhanced political capability Stable and steady profiting
capability
Large-scale production organization capability
Standardized basic management capability
Value-driven brand capability
8 Key Areas Promoting safety management and construction to a new height
Gaining a new advantage in the optimization of market layout
Presenting a new look in the structural adjustment of resources
Reaching a new level of upgraded products and service
Achieving a new breakthrough in the aviation cargo logistics development
Entering a new stage of innovation-driven digital development
Demonstrating a new achievement in green and low-carbon development
Making new results in integrated industrial development
Major development goals during the 14th Five-Year Plan period:
Passenger carried (million person-times): 166.72, Passenger's overall
satisfaction (points): 83.5, Accountable incidents rate of air transportation
per 10,000 flight hours: <0.11.
2023 Highlights of ESG Performance
Indicators 2023
ASK (million) 292,513
RPK (million) 214,173
ATK (million) 36,002
RTK (million) 21,887
Passenger carried (1,000 person-times) 125,454.5
Cargo and mail carried(1,000 tonnes) 1,070.4
Safe flight hours (1,000 hours) 2,529.5
Accountable incidents rate of air transportation per 10,000 flight hours 0.007
Flight on time performance (%) 87.94
Passenger's overall satisfaction (points) 88.4
Number of registered aircraft (unit) 905
Total assets (RMB million) 335,303
Year-end market value (RMB million) 105,916
Fuel consumption per tonne-km (kg/tonne-km) 0.336
Utilization rate of APU replacement facilities 100%
Handling rate of hazardous waste in mechanical maintenance 100%
Striving Hard for Higher Efficiency and Effectiveness
Seizing the opportunity posed by the recovery of the air passenger market
While ensuring safety operation, Air China took comprehensive steps to
improve quality and efficiency, and worked hard for higher efficiency and
effectiveness, making a year-on-year increase of 166.74% in operating revenue
and decreasing the loss of RMB44.219 billion. Our operating performance
significantly improved, and the overall economic operation remained stable.
Adhering to the principle of increasing investment, ensuring price, and
competing for quantity
Strengthening the capabilities for collaborative development and focusing
on improving the optimization allocation of core resources;
Improving the utilization efficiency of advantageous aircraft models and
expanding effective investment;
Seizing the opportunity to increase capacity at major airports and
continuously upgrading express line products;
Providing quality service to contribute to China's "Go Global" strategy and
the Belt and Road initiative; Implementing 55 routes related to the Belt and
Road initiative, involving 25 countries and 31 cities, with the flight volume
approaching 90% of the same period in 2019, and continuing to promote the
resumption and increase of international routes;
Speeding up marketing model innovation and digital transformation,
deepening passenger-cargo linkage and driving year-on-year growth in
transportation revenue of passenger and cargo.
Adhering to strict control of costs
Firmly establishing the concept of "tightening the belt," managing the
budget strictly, and making cost reduction through the entire business;
Exploring the potential for cost reduction in operation, controlling fixed
costs throughout the entire process, and reducing cost levels;
Highlighting the principles of cash flow safety and sustainability,
strengthening the overall management of funds, and improving the efficiency of
capital utilization;
Continuously optimizing debt structure, effectively controlling the scale
of interest bearing liabilities, and saving financial expenses;
Improving the overall labor productivity and scientifically controlling
labor costs.
Honors and Awards
Awards
● In June, the World Brand Lab released the "China's 500 Most Valuable
Brands 2023," ranking Air China 24th on the list with a brand value of RMB
235.162 billion, a leading position in the domestic aviation industry.
● In December, Air China was awarded the "the World's 500 Most Influential
Brands" by the World Brand Lab in the 17th consecutive year.
● Meanwhile, Air China was awarded the "Brand China NO.1 (Aviation
Industry)" in 2023.
● Air China was awarded the "Five Star Global Airline" by APEX (Airline
Passenger
Experience Association).
● In May 2023, at the 19th Selection of Innovation Achievements in
Modern Management of Transportation Enterprises held by the Ministry of
Transport of the People's Republic of China, the "Carbon Emission Monitoring
and Analysis Platform" independently developed by CNAHC won the first prize,
and the "Innovation Practice Project of Restriction Information for Digital
Airport Operation" of Shenzhen Airlines won the second prize.
● From August 23rd to 25th, 2023, the case of "the Construction of
Autonomous Training Capacity for Flight Trainees" submitted by the Training
and Development Department of Air China won the highest award - "Top 10
Typical Cases of Integration between Industry and Education in the Civil
Aviation Industry in 2023" at the 3rd Civil Aviation Vocational Education and
Training Development Forum and the 1st Exhibition of Integration between
Industry and Education in Civil Aviation.
● At the first Professional Competition of Digital Innovation among
State-owned Enterprises hosted by the State-owned Assets Supervision and
Administration Commission, the project "Multi-level Refined and Autonomous
Flight Monitoring System for Civil Aviation" of CNAHC won the third prize for
digital scenario innovation.
● In 2023, the project of "Aircraft Cross Fueling System" of Air China was
awarded as an excellent achievement in the 7th National Workers' Excellent
Technological Innovation Achievements Communication Activity, jointly
organized by the All-China Federation of Trade Unions, etc.
● Air China's information disclosure work was rated A-level, the highest
level of annual information disclosure work, by the Shanghai Stock Exchange,
in the 10th consecutive year.
● Air China was awarded the "Best Practice Case" by the China Association
for Public Companies in the Best Practice Activity of the Board of Listed
Companies in 2023.
Ÿ In the 2023 ESG rating of listed companies held by state-owned enterprises,
Air China reached a four-star level, and was selected into the "State-owned
Enterprises ESG Top 100 Index" .
● In December, Air China's excellent management cases were selected into the
Blue Book on Social Responsibility of State-owned Enterprises (2023) and the
Blue Book on Overseas Social Responsibility of State-owned Enterprises (2023).
Responses to UN 2030 Sustainable Development Goals (SDGs)
SDGs Our Actions in 2023 SDGs Our Actions in 2023
SDG 1: NO POVERTY Response: Air China is dedicated to supporting underprivileged areas with care SDG 2: ZERO HUNGER Response: Air China is supporting the development of an e-commerce sales
and commitment. We have formulated key project plans for rural revitalization, platform for agriculture and livestock products, assisting Sonid Right Banner
known as the "5+N" initiative. In 2023, a total of RMB 42.17 million was in transitioning to internet sales, and expanding the sales channels for
invested for 20 assistance projects. agricultural products.
Corresponding chapter: 6.1 Rural Revitalization Corresponding chapter: 6.1 Rural Revitalization
SDG 3: GOOD HEALTH ANG WELL-BEING Response: In order to improve the health and safety in working conditions of SDG 4: QUALITY EDUCATION Response: Air China and Shenzhen Airlines jointly dispatched 16 volunteer
employees, Air China enhances occupational health hazard prevention and teachers to the Zhaoping area, accumulating a total of 3,303 teaching hours.
control, conducts physical examinations for all employees, and provides In addition, Air China organized 5 batches of short-term volunteer teaching
on-site psychological health consultations. At the same time, Air China offers activities involving 48 individuals during weekends, accumulating a total of
diverse and comprehensive welfare benefits for employees. 79 teaching hours.
Corresponding chapter: 5.3 Occupational Health and Safety, 5.4 Incentives and Corresponding chapter: 6.1 Rural Revitalization
Care
SDG 5: GENDER EQUALITY Response: Air China values gender equality and ensures that female employees SDG 6: CLEAN WATER AND SANITATION Response: Air China attaches great importance to water conservation and reuse,
have fair opportunities for promotion and career development. We have deeply explores water-saving and environmental protection technologies, and
formulated the fourth edition of the Special Collective Contract for the actively implements water-saving measures in daily operations to
Protection of Female Employees' Rights and Interests, aimed at enhancing the comprehensively improve the overall utilization rate of water resources.
welfare of female employees. We have organized a series of activities for
female employees and promoted the establishment of female-friendly workplaces.
Corresponding chapter: 3.3 Promoting the Green Operation Model
Corresponding chapter: 5.1 Employment and Employees' Rights and Interests; 5.4
Incentives and Care
SDG 7: AFFORDABLE AND CLEAN ENERGY Response: Air China has promoted the domestic application of sustainable SDG 8: DECENT WORK AND ECONOMIC GROWTH Response: Air China provides all employees with a competitive salary in the
aviation fuel, promoting the first commercial passenger flight to use industry, forms a differential compensation and performance distribution
domestically produced sustainable aviation fuel on a wide-body aircraft in system that matches individual capabilities, performance, and market
China. competition.
Corresponding chapter: 3.2 Addressing Climate Change Corresponding chapter: 5.4 Incentives and Care
SDG 9: INDUSTRY INNOVATION Response: Air China advances the implementation of the Digital Transformation SDG 10: REDUCED INEQUALITIES Response: Air China strictly adheres to an open, fair, and equal employment
Action Plan (2022-2025) , deepens the development of three major digital policy, and firmly eliminates discriminatory behaviors based on nationality,
AND INFRASTRUCTURE platforms, and comprehensively supports the Company's digital transformation. age, ethnicity, gender, beliefs, as well as any physical or psychological
disabilities. The Company upholds equal pay for equal work and safeguards the
legitimate rights and interests of employees. In 2023, Air China did not
experience any incidents of employing child labor, forced labor, or
Corresponding chapter: 1.4 Digital Transformation discrimination.
Corresponding chapter: 5.1.1 Equal Employment
SDG 11: SUSTAINABLE CITIES AND COMMUNITIES Response: Air China actively engages in public welfare activities, provides SDG 12: RESPONSIBLE AND PRODUCTION Response: Air China strives to create a more enjoyable travel experience for
care and assistance to community residents, and injects energy and warmth into passengers through a rich array of service offerings and thoughtful attention
social development. to service details. In 2023, 10 subsidiary companies, 7 operational management
units, and 3 management support departments of Air China, all with audit
qualifications, have successfully passed the service quality management system
certification.
Corresponding chapter: 6.3 Supporting the Community
Corresponding chapter: 4.1 Service Quality Management
SDG 13: CLIMATE ACTION Response: Air China strengthens climate governance capabilities, actively SDG 14: LIFE BELOW WATER Response: Air China actively promotes biodiversity conservation monitoring
implements the national goals of "carbon peaking" and "carbon neutrality". We initiatives, initiates the Five-Year Action Plan for Yangtze River Ecological
incorporate climate change response into the Company's strategic planning, Protection. The Company also conducts activities such as breeding and
comprehensive risk management system, and daily operational management, releasing rare fish species into the Yangtze River, demonstrating its
contributing Air China's efforts to global climate change mitigation. commitment to the conservation of aquatic biodiversity in the Yangtze River.
Corresponding chapter: 3.2 Addressing Climate Change Corresponding chapter: 3.3 Promoting the Green Operation Model
SDG 15: LIFE ON LAND Response: Air China upholds the ecological civilization concept of respecting, SDG 16: PEACE, JUSTICE AND STRONG INSTITUTIONS Response: Air China has improved the corporate social responsibility
protecting, and adapting to the nature. The Company actively engages in management system and governance structure, and established a diversified
public welfare actions such as biodiversity monitoring and promotion to Board of Directors. The Company deepens the development of a culture of
contribute to the preservation of natural ecosystems. integrity and has "zero-tolerance" towards bribery, corruption, fraud, money
laundering, and unfair competition.
Corresponding chapter: 3.3 Promoting the Green Operation Model
Corresponding chapter: 1.1Responsible Governance
SDG 17: PARTNERSHIPS FOR THE GOALS Response: Air China actively participates in various activities of industry
associations, builds a global aviation network, and leads industry-wide
coordinated development.
Corresponding chapter: 6.4 Jointly Promoting Industry Development
1. Sustainable Development Management
SDG 16: PEACE, JUSTICE AND STRONG INSTITUTIONS
Air China firmly believes that sound corporate governance is the cornerstone
of maintaining sustainable development of the Company. Air China has developed
a comprehensive corporate control structure and risk management system, while
continuously exploring and implementing diverse corporate governance measures.
A sound management mechanism and efficient measures have effectively enhanced
the effectiveness of corporate governance, solidified the foundation for
sustainable development, and maintained a stable development posture in the
constantly changing market environment.
1.1 Responsible Governance
Air China consistently improves the corporate governance and risk resilience,
constantly optimizing the social responsibility management system and
governance structure. Adhering to honest business practices and compliance
management, ensuring integrity in professional conduct, and effectively
safeguarding investors' interests, Air China integrates sustainable
development management into the Company's overall governance and operations,
thereby steadily enhancing Company value through strengthened governance
capabilities.
1.1.1 Governance System
Air China has established a corporate governance system that is legally
compliant, transparent in responsibility, coordinated in operation, and
effectively balanced, based on the Company Law of the People's Republic of
China, the Securities Law of the People's Republic of China, and the Code of
Corporate Governance for Listed Companies, among other laws and regulations.
In 2023, we revised the Articles of Association, the Rules of Procedure of the
General Meetings of Shareholders, the Rules of Procedure of the Board of
Directors, the Independent Directors Work Rules, and the working rules for
each professional committee of the Board of Directors. We also formulated the
Nomination Committee Work Rules, the Remuneration and Assessment Committee
Work Rules, and other corporate governance systems, aiming to optimize the
efficient corporate governance structure and continuously enhance governance
capability.
1.1.1.1 Party Committee of Air China
Air China has integrated the Party's leadership with corporate governance
together through the Articles of Association, and clarified the leading role
Party committee played in corporate governance. The Company scientifically
clarifies the scope of responsibilities for Party committee, and develops and
dynamically adjusts a list of material issues' responsibilities to clarify the
responsibilities of each governance subject, ensuring efficient and
coordinated operation. It is specified that major operational and management
issues must be preliminarily discussed by the Party committee before being
submitted to the Board of Directors for decision-making according to their
authority and the prescribed procedures. In 2023, out of 59 proposals decided
by the Board, 40 were preliminarily discussed by the Party committee.
Continuously integrating the Party's leadership deeply into corporate
governance
• Comprehensively and systematically review the major issues that the
Party committee must study, promoting the "discussion of major issues" efforts
within all secondary units.
• Strictly implement the Party committee's deliberation procedures,
strengthen the coordination of the Party committee meetings, Administration's
office meetings, and the Board of Directors meetings to ensure high-quality
guarantee for the Party committee's deliberation and decision-making.
• Diligently implement the deployments related to each special action,
refine the governance to strengthen the Party's leadership-related
deployments, clarify measures and deliverables..
1.1.1.2 Management
The Company's management performs its duties in accordance with the laws, the
Administration Office's Rules of Procedure, and the Board of Directors'
authorization. It carries out the Board of Directors' resolutions and reports
to it on a regular basis. In 2023, Air China held 29 Administration Office
meetings.
1.1.1.3 Board of Directors
The Board of Directors of Air China is the Company's main decision-making
body, responsible for the Company's overall strategy, property management,
internal supervision, and risk management. The Board of Directors bears the
responsibility of determining strategic direction and formulating overall
strategy and policies. It exercises its powers in accordance with legal
procedures and the Articles of Association, and plays the role of strategy
generating, decision-making, and risk-prevention. It is also accountable to
the Shareholders' Meeting, supervises the management, and leads Air China
towards steady development.
Diversity of Board of Directors
The members of Air China's Board of Directors are diverse and professional,
including five civil aviation experts, and one each of financial, audit,
business management, and legal and risk control expert. The diverse
composition of the Board of Directors ensures that decision-making and
supervision can be fully considered from various angles, providing
comprehensive support and guidance for the development of Air China.
Directors in Air China
No. Name Gender Title
1 Ma Chongxian Male Chairman
Executive Director
2 Wang Mingyuan Male Vice Chairman
Executive Director
President
3 Feng Gang Male Non-executive Director
4 Patrick Healy Male Non-executive Director
5 Xiao Peng Male Employee Director
6 Li Fushen Male Independent Non-executive Director
7 He Yun Male Independent Non-executive Director
8 Xu Junxin Male Independent Non-executive Director
9 Winnie Tam Wan-chi Female Independent Non-executive Director
Performance of Board of Directors
In 2023, the Board of Directors of Air China diligently fulfilled their
responsibilities, supervised the proposal departments in tracking the
implementation progress of Board resolutions and authorized matters, enhancing
the Company's governance. In 2023, the Company organized three research
activities for independent directors, focusing on the business department in
the Japan, the Company's digital transformation, and subsidiary management. By
the end of 2023, the Air China Board of Directors held 11 meetings, reviewed
and passed a total of 59 proposals, and listened to 13 special reports.
Professional Committees of the Board of Directors
Before the Board of Directors deliberates and makes decisions, professional
committee meetings are convened to study and review related proposals. The
chairpersons of the committees report the findings and recommendations of the
independent directors to the Board of Directors, providing support for the
Board's scientific, rational, and efficient decision-making. In 2023, we
optimized the Company's governance structure by separating the Board's
Nomination and Remuneration Committee into a Nomination Committee and a
Remuneration and Assessment Committee. We also optimized the staffing of the
Board's various professional committees, establishing Coordinated Departments
composed of senior management and business departments under the professional
committees to support their decision-making. We continued to optimize the
working rules of each professional committee of the Board, including
supplementing and improving the ESG responsibilities and work content of the
Strategic and Investment Committee, promoting effective connection and
implementation of ESG regulation and the Company's ESG efforts.
l Strategic and Investment Committee. In 2023, the Committee held five
meetings and listened to two special reports.
l Audit and Risk Control Committee (Supervision Committee). In 2023, the
Committee convened six meetings and listened to 11 special reports.
l Nomination and Remuneration Committee. In 2023, the Committee held six
meetings and listened to one special report; the adjusted Remuneration and
Assessment Committee held one meeting.
l Aviation Safety Committee. In 2023, the Committee convened three meetings
and listened to two special reports.
1.1.1.4 General Meetings of Shareholders
The General Meetings of Shareholders are Air China's highest authority. The
Company has formulated and follows a shareholder communication policy, fully
ensuring that all shareholders enjoy an equal status and effectively exercise
their rights to information, voting, and other entitlements. Communication and
interaction with shareholders are maintained and promoted through General
Meetings of Shareholders, announcements, quarterly reports, roadshows, and
other methods, to listen to, understand, and respond to shareholder feedback.
In 2023, Air China held four General Meetings of Shareholder.
1.1.1.5 The Supervisory Committee
The Supervisory Committee of Air China, in accordance with the Company Law of
the People's Republic of China, the Articles of Association and other relevant
regulations, has conducted prudent inspections and effective supervision over
the legality and compliance of the duties performed by the Board of Directors
and senior management, in order to protect the legal rights and interests of
the Company and the shareholders. By the end of 2023, the Company's
Supervisory Committee consisted of five supervisors, including 2
representative employees, and convened 7 meetings of the Supervisory Committee
throughout the year.
1.1.2 Guidance of Party Building
The year 2023 marks the start of fully implementation of the guiding
principles of the 20th CPC National Congress. Air China, guided by the Xi
Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully
implements the guiding principles of the 20th National Congress to coordinate
the key tasks throughout the year, leading high-quality development with
high-quality Party building.
Firmly strengthen political construction. Go all out to cooperate with the
second round of inspections by the 20th Central Committee; continuously
strengthen follow-up supervision and implementation of the Party Central
Committee's decisions and deployments.
Adhere to theoretical learning. Carefully organize and implement two batches
of thematic education to study and implement Xi Jinping Thought on Socialism
with Chinese Characteristics for a New Era, solidly promoting the
internalization and transformation of the Party's innovative theories in the
new era to the construction of the company.
Optimize grassroots Party building work. Continue to standardize the setup of
grassroots organizations, solidly advance the renewal of elections, carry out
Party member development and education management, organize the annual
commendation to honor outstanding members and organizations, and innovatively
carry out learning activities.
Give full play to exemplary role. Establish a correct orientation for
selecting and employing personnel, optimize the structure of the cadre team,
and encourage cadres to take responsibility. Continue to deepen market
mechanism reforms, fully stimulate enterprise vitality and momentum.
Adhere to rigorous governance. Ensure the principal and oversight
responsibilities for full and rigorous Party self-governance are assumed,
make integrated efforts to ensure that officials do not have the audacity,
opportunity, or desire to become corrupt, and foster a sound political
ecosystem featuring honesty and integrity within the Party.
Give full play to the unity of various groups and organizations. Fully play
the role of intellectuals who are not Party members, strengthen the
development of grassroots teams, and enhance the awareness uplifting of the
youth.
Case: Implementing Thematic Education on Xi Jinping Thought on Socialism with
Chinese Characteristics for a New Era
Since April 2023, Air China had deeply carried out thematic education on
learning and implementing Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era. Adhering to the conduct of thematic education
as a major political task, following the unified deployment of the Party
Central Committee, we strengthened organization and publicity, organically
integrating theoretical study, investigative research, high-quality
development practice, rectification, and establishment of regulations in a
unified manner, making solid achievements through learning.
1.1.3 Social Responsibility Management
A sound social responsibility governance system is the fundamental guarantee
for a company to achieve sustainable development. Air China practices a robust
business philosophy, consistently enhances the social responsibility
governance system, and integrates environment, social, and governance (ESG)
into the decision-making and daily operations. This maximizes effectiveness,
genuinely safeguards the interests of investors and other related parties, and
efficiently and continuously advances the implementation of Air China's social
responsibility initiatives.
1.1.3.1 Social Responsibility Management Framework
Board of Directors
CSR Leadership Panel The chairman and the vice chairman are the panel heads.
Responsible for formulating CSR strategies and approving CSR plans, and
guiding the promotion and implementation of CSR work.
Office of CSR Leadership Panel Responsible for formulating annual CSR plans, and organizing and coordinating
the implementation of CSR plans and other tasks.
Members of CSR Leadership Panel Office Operation Control Centre
Commercial Committee
Administration Office
Strategy & Development Department
Human Resource Department
Finance Department
Aviation Safety Management Department
Product Service Department
Legal Department
Corporate Culture Department
Office of the Board
Labor Union Office
1.1.3.2 Stakeholder Communication
Air China continues to listen voices of regulators, shareholders, passengers,
employees, partners, and other stakeholders, and expands and optimizes
communication channels so that it can communicate and exchange ideas with all
of its stakeholders in a positive and open manner. We identify critical issues
and actively respond to the needs of all stakeholders by comprehensively
summarizing the Company's characteristics and changes in the external
environment.
In 2023, the forms of shareholder communication for Air China included:
Information Disclosure：
l The Company successfully completed the compilation of Air China's periodic
reports for 2022-2023 in three versions (i.e., for Shanghai, Hong Kong, Japan,
respectively) and the 2022 Social Responsibility Report, and disclosed them on
the stock exchanges in Shanghai, Hong Kong, London, and Japan respectively.
l In 2023, disclosures included announcements on the listing and circulation
of non-publicly issued restricted shares, amendments to the Articles of
Association, the rules of the General Meetings of Shareholders, the rules of
the board of directors' meeting, and other matters.
By the end of December 2023, we had disclosed 67 interim domestic
announcements, 68 interim overseas announcements, and two circulars.
Investor Relations：
l The Company conducts performance releases effectively. We utilize annual,
semi-annual, and quarterly performance briefings to seriously address investor
concerns.
l The Company maintains close communication with investors. In conjunction
with the annual report disclosure, Company leaders personally led teams to
visit over 30 important institutional investors, resuming face-to-face
exchanges with overseas markets that had been interrupted for more than three
years. Domestically, we visited 26 key institutional investors in Shanghai,
Shenzhen, Guangzhou, and Beijing. Moreover, we participated in investment
bank, institutional, and brokerage summits and strategy meetings, arranged,
and hosted domestic and international institutional research. Throughout the
year, we hosted and convened over 100 research sessions and various
communication meetings.
l The Company fully focuses on the demands of small and medium investors.
Within the year, annual, semi-annual, and third-quarter performance briefings
were held via the SSE Roadshow Center platform, where the Company's management
interacted extensively with small and medium shareholders online. We also
strengthened interaction with small and medium investors through platforms
such as SSE E-Interactive, and the investor relations page on our official
website.
Stakeholders Communication channels Expectations and appeals Response from Air China
Government/Domestic and overseas regulatory authorities Work meetings and briefings Integrity, compliance and orderly operations Participating in the planning, research and formulation of policies and
reports on special topics
Information disclosure Support for important and major events
Following regulatory requirements
Cooperation with governments Zero accident relating to safety operations
Monitoring and evaluation
Release of blue books Good corporate image
Participating in special training
Energy saving, emission reduction and environmental protection
Investors/Shareholders Information disclosure Realizing standardized corporate governance Improving corporate governance and internal control system
Shareholders' meetings Protection of investors'/shareholders' interests Working on investor relations
Investors' meetings Sustainable development ability Strengthening the core competitiveness
Official website of the Company Regular result announcements
Customers Customer satisfaction surveys Flight safety and on-time performance Establishing branded lounges
Compliant handling Provision of all-round and high-quality service Certification of food safety management
New media Protection of personal privacy Provision of intelligent service
Improving release mechanism for information on irregular flights
Protecting passenger information
Employees Employee satisfaction surveys Protection of rights and interests Building a multi-level developing channel and learning path for talents
Internal BBS, magazines, emails, and WeChat Employee representatives' meetings Focus on the Company's development strategy Facilitating the work of Staff Service Centre
Activities of the trade union Participation in the Company's management and operation Providing health checkups, psychological counseling, etc.
Establishment of teams Smooth career pathways Innovation studios for advanced model and craftsmen
Compensation and benefits Cultural and sports activities
Skill contests
Helping employees in difficulty
Partners/ Suppliers Daily business interactions Honesty and integrity in business operation Strengthening communication and cooperation
Partners' meetings Transparency in procurement Strengthening supplier management
Mutual development Revising and improving procurement policy
Strengthening suppliers' capability and awareness of environmental protection
Peers Industry forums Attention to industry development and trends Strengthening alliance cooperation
Industry conferences Maintenance of a fair and orderly market Conducting industry discussions
Carrying out industrial cooperation
Community Public welfare and charity activities Promoting economic growth of the communities Promoting rural revitalization
Volunteer service Supporting public welfare events Engaging in public welfare and charity activities
Completing important transportation tasks
Media Press releases Responding to important events of the Company Publication of CSR reports and regular performance reports
Media calls and visits Public image and influence Timely update of new developments via Weibo, WeChat and Douyin
Official new media platforms Future planning Open day
1.1.3.3 Disclosure Principles
Materiality: Following national conditions and policies and in accordance with
the relevant regulatory requirements, such as the ESG Reporting Guide released
by the Stock Exchange of Hong Kong and Guide for Environmental, Social
Responsibility, and Corporate Governance Information Disclosure of Listed
Companies on the Shanghai Stock Exchange, the Measures for Compliance
Management of Central Enterprises and the Work Plan for Improving the Quality
of Listed Central State-Owned Enterprises and the Research on the Compilation
of ESG Special Reports by Central State-Owned Enterprises issued by China's
State-owned Assets Supervision and Administration Commission, Air China has
identified material CSR issues that are consistent with its industry and
business features. Then, reviewing through benchmarking with peer companies
and stakeholder communications, we establish the list of material CSR issues
with our characteristics.
In 2023, to ensure the accuracy and comprehensiveness of Air China's social
responsibility material issue matrix, we assessed the original list based on
changes in peer issues and trends in capital market issues. After evaluation,
adjustments to Air China's 2023 material CSR issues include: removing "ESG
Governance," changing "Integration into Local Communities" to "Charity and
Community Engagement", "Care Policies for Employees" to "Employee Care,
Remuneration, and Benefits," "Energy Conservation and Emission Reduction" to
"Climate Change Response and Carbon Reduction," "Pollution Prevention" to
"Pollution Prevention and Waste Management," merging "Protection of Employees'
Rights and Interests" and "Communication with Employees" into "Communication
with Employees and Protection of Employees' Rights and Interests," and
combining "Internal Risk Control" and "Lawful Operation and Compliance" into
"Risk Management and Compliant Operations." After management review, 24
material issues were finalized, with key responses made to highly material
issues in the report.
In 2023, to improve targeted disclosure of the social responsibility report,
Air China conducted surveys among internal and external stakeholders to better
understand their recommendations and viewpoints on the development of the
Company from two dimensions: "Importance to the Company" and "Importance to
Stakeholders." This process ultimately resulted in the identification of
material CSR issues matrix for Air China in 2023.
Quantitativeness: Air China has created a set of standardized ESG indicator
management tools that cover the Company's management support division,
business management units, branches, and major subsidiaries. Air China
collects key indicators of quantitative disclosure in all environmental and
social categories in accordance with the ESG reporting guidelines on a regular
basis, and summarizes them at the end of each year and discloses. The
calculation method and details of the reference standards of the quantitative
data in this report's environmental categories can be found in the report's
chapters.
Consistency: This year's report includes Shandong Aviation Group Corporation,
for the first time in the disclosure scope, maintaining consistency in data
calculation and disclosure methods with other entities involved in this
report.
Materiality Analysis and Determination of Air China
Materiality List in 2023
High materiality Medium materiality
Flight safety Communication with employees and Protection of employees' rights and interests
Passenger health and safety Rural revitalization
Supporting special flight missions Integrity management
On-time performance Innovation of products and service
Protection of customer privacy Risk management and compliant operations
Occupational health and safety Climate Change Response and Carbon Reduction
Employee Care, Remuneration, and Benefits Sustainable value chain
Improvement of customer experience Internationalized development
Sustainable use of resources
Service for special passengers
Work conditions and social security
Pollution Prevention and Waste Management
Contributions to industry development
Employee training and development
Charity and Community Engagement
Diversity and equality
Air China's Material ESG Issue Matrix
1.2 Comprehensive Risk Management
Air China continues to deepen the integrated collaboration mechanism of
"focusing on the rule of law, strengthening internal control, preventing
risks, and promoting compliance," accelerating the implementation of
full-process, full-chain, and comprehensive risk prevention and control
efforts, and comprehensively strengthening the management and prevention of
operation and safety risks.
1.2.1 Risk Management
Air China is committed to building a risk control and compliance system that
meets regulatory requirements and international standards, establishing a
standardized top-level risk control and compliance framework, clarifying the
division of responsibilities for risk control and compliance work, and
implementing control responsibilities. The Board of Directors is fully
responsible for the Company's risk control and compliance efforts, with the
Party Committee of the Company in charge of the pre-research and the
Management in charge of superintending the development and implementation of
various requirements. The Air China Legal Matters Leading Group coordinates
the development of risk, internal control, compliance, and legal affairs,
clearly implementing a prudent risk preference, with "zero tolerance for
safety hazards, uninterrupted financial security, and reasonable risk
exposure" as the core, constructing three lines of defense for risk control
and compliance management.
"Three Lines of Defense" for Comprehensive Risk Management
Discipline Inspection and Comprehensive Supervision Board of Directors/Audit and Risk Control Committee (Supervision Committee) Discipline Inspection and Comprehensive Supervision
Senior Management/Air China Legal Matters Leading Group
First Line of Defence Second Line of Defence Third Line of Defence
Business Activity Financial Control Internal Audit
Internal Control Processes Safety Supervision
Risk Assessment Quality Control
Control Measures Legal Management
Risk Management
Compliance Management
Internal Control Management
Business Departments Support Departments Assurance Departments
As the first line of defence for corporate risks, business departments are Support departments like Legal, Compliance, Financial, Quality, Safety, and As the third line of defence, Internal Audit Department conducts independent
responsible for the effective identification and control of risks, and bear Human Resources serve as the second line of defence to provide risk management assessment of Air China's risk management and control results, and performs
the main responsibility for risks during business and operation processes. and control policies, methodologies and tools, and organize risk monitoring risk assessment and supervision responsibilities.
and internal control compliance management.
Risk Identification
Air China, in accordance with the Company Law of the People's Republic of
China, the Securities Law of the People's Republic of China, and other
relevant laws and regulations, as well as international and industry
experience, has developed the Risk Framework. This framework categorizes risk
into nine major primary risk categories and further subdivides these into over
a hundred secondary risks in alignment with actual business operations,
ensuring the effective functioning of Air China's risk identification and
control responsibilities.
Nine Major Risks:
Ÿ Strategic Risk
Ÿ Safety Risk
Ÿ Investment Risk
Ÿ Financial Risk
Ÿ Operational Risk
Ÿ Market Risk
Ÿ Legal Risk
Ÿ Public Opinion Risk
Ÿ Integrity Risk
Risk Reporting and Management
Air China has implemented the Risk Level Standards and the Risk Event
Reporting System to facilitate the reporting of daily operational risks. Any
employee, who identifies and preliminarily assesses a risk level,has the
responsibility to report it up the chain according to the principles of risk
management at each level. Any person responsible for a risk within the company
should monitor the risk regularly, according to the Company's or the risk
supervisor's requirements, the inspection frequency, or the actual work
situation, and report the monitoring results to the risk supervisor.
Risk Control and Tracking
Air China continues to improve the risk management mechanisms, regularly
identifying, analyzing, and assessing potential market, financial, legal, and
other risks in operational management, and actively formulating and
implementing risk response actions.
Ensure a solid risk research and judgement mechanism: adhere to governance and
decision-making processes, assess annual material risks through in-depth
research and specialized diagnostics, and apply comprehensive measures;
enhance the precision of risk quantification by quantifying key risk
indicators, categorizing and grading significant risk issues for rolling
monitoring and closed-loop management; implement an annual mechanism for the
normalization of overseas legal compliance risk checks, emphasizing the
control of foreign legal compliance risks.
Extend the risk assessment mechanism for decision-making: Prioritize
compliance to ensure all significant decision-making risks are evaluated
comprehensively, actively prevent and mitigate risks; integrate risk
assessment deeply into reform and development, core tasks, and major project
management.
Develop a robust risk prevention and control coordination mechanism:
Management should supervise the progress of key tasks, focus on evaluating
challenges in risk and control management, and share best practices;
Continuously strengthen the information sharing mechanism among risk control
compliance, discipline inspection, and audit functions to build the "three
lines of defense" in risk prevention within collaborative management.
Comprehensively consolidate the risk prevention and control responsibility
mechanism: Implement strict risk classification and layered management, ensure
responsibility for risk reduction is clearly assigned to specific positions
and individuals, and enhance the ability to manage risk throughout the entire
process.
1.2.2 Corporate Compliance
Strictly adhering to the Measures of the Compliance Management issued by
China's State-owned Assets Supervision and Administration Commission (SASAC),
as well as related laws and regulations, Air China has introduced internal
compliance management systems such as the Compliance Management Regulations of
Air China Limited, the Compliance Code of Conduct of Air China Limited, the
Management Measures for Overseas Compliance of Air China Limited, solidifying
the foundation of the compliance management system.
Air China continuously improves a compliance management system and conducts
multiple corporate compliance practices to enhance the corporate compliance
management from various aspects.
Highlight Compliance Activities in 2023
l On September 1, 2023, the Company launched the "Legal Awareness" publicity
column.
l During the "Compliance Awareness Month" in 2023, compliance promotional
videos were circulated, compliance micro-classes in key areas were launched
online, and the "Explain Laws with Pictures, Follow Rules in Practice"
activity was conducted.
l Implementation of the "Eighth Five-Year" legal awareness promotion plan,
organizing themed legal culture speech contest.
l Development of online training courses on contracts and the creation of
targeted risk control training materials for newly integrated enterprises and
mixed-ownership listed enterprises.
1.2.3 Internal Audit
To comply with regulatory requirements and corporate governance needs, Air
China has established a three-tier internal audit system framework. Currently,
Air China's headquarters has issued 17 rules, and the audit institutions at
all levels have issued a total of 66 rules,.
Air China's Three-Tier Internal Audit System
First-tier rules The Internal Audit Work Regulations of Air China Limited
Second-tier rules The Economic Responsibility Audit Regulations of China National
Aviation Holding Corporation Limited and Air China Limited
The Internal Control Evaluation Management Measures of Air China
Limited among other specific audit regulations and management methods.
Third-tier rules The Audit Rectification Tracking Management Measures of China National
Aviation Holding Corporation Limited and Air China Limited
The Internal Audit Work Manual of Air China Limited among other detailed audit
implementation rules and operation manuals.
The Company's internal audit work is carried out under the management and
guidance of the Board of Directors and the Audit and Risk Control Committee
(Supervision Committee), reporting on the progress of projects, the
implementation of problem rectifications, and the pursuit of responsibilities
for violations in investment and operations. In 2023, audit institutions at
all levels conducted 100 audit projects in four categories: economic
responsibility audits, special audits, engineering project audits, and
internal control supervision evaluations, including one energy conservation
and emission reduction audit project. Moreover, through the rectification
closure mechanism, we strictly enforced the rectification of identified
issues, advancing the improvement of systems and business processes,
adjustments to accounting entries, recovery of irregular funds, and
recuperation of economic losses.
1.2.4 Anti-Corruption and Business Ethics
Air China adheres to domestic and international laws and regulations,
conducting the business activities in a legal and compliant manner. Based on
the Supervision Law of the People's Republic of China, the Anti-Money
Laundering Law of the People's Republic of China, the Anti-Monopoly Law of the
People's Republic of China, and Anti-Unfair Competition Law of the People's
Republic of China, Air China has developed and issued documents such as the
Compilation of Antitrust Case in the Aviation Industry, the Anti-Commercial
Bribery Compliance Manual (2022 Edition), and the Compliance Manual for Data
in Various Jurisdictions (2022 Edition), adopting a "zero tolerance" stance
towards bribery, corruption, fraud, money laundering, and unfair competition.
In 2023, Air China was not involved in any lawsuits related to corruption,
bribery, fraud, or money laundering.
Anti-Corruption System
Air China continues to maintain integrity and combat corruption by improving
anti-corruption mechanisms, conducting multiple anti-corruption activities or
training, optimizing channels for letters and visits, as part of the efforts
to safeguard the healthy development of Air China's business. In 2023, Air
China strengthened the development of the anti-corruption system, deepened the
integrity of the management, and implemented the Regulations on the Integrity
Commitment of Leadership of Air China Limited.
Supervision Mechanism
"Joint Supervision" Committee
The Company adheres to the "bi-monthly meeting, quarterly summary" mechanism
for members of the Company's joint supervisory committee, coordinates various
internal supervision resources and forces, strengthens regular supervision of
areas prone to corruption issues, and forms a pattern of anti-corruption work
where responsibilities are clearly defined and efforts are unified and
coordinated.
Anti-corruption Work Leading Group and Coordination Group Working Mechanism
The Company leverages the synergistic effect of anti-corruption supervision by
holding meetings of the leadership group and coordination group for integrity
building, and anti-corruption efforts, making deployments and arrangements for
improving the mechanism for transferring clues and sharing supervision
information.
Supervision and Inspection Practices
To implement the requirements of anti-corruption policies, Air China issued
the Supervision, Inspection, and Assessment Plan, advancing anti-corruption
monitoring practices among relevant units and strengthening supervision. In
2023, Air China focused on key areas to enhance integrity risk prevention and
control, carried out special rectifications, organized special supervision and
inspection activities, and conducted joint supervision and inspection of
integrity risks and compliance controls at Air China's overseas branches,
deeply advancing cross-border corruption governance.
§ Develop and establish the Assessment Methods and the Detailed Evaluation
Criteria for the primary responsibility of building a cleaner government.
§ Through coordination of audit and inspection department,
simultaneously carry out one special inspection, one special audit, and seven
special supervision and inspection activities.
Moreover, we issued the List of Enterprises Prohibited from Transactions
(2023) and imported it into the procurement platform system to strengthen the
integrity management requirements for suppliers, ensuring the integrity and
compliance of procurement.
Public Compliant Work
Air China has continued optimizing the public compliant system, adhering to
the Implementation Rules for the Handling of Letters and Visits of Air China
Limited (for Trial Implementation) and establishing various channels for
public compliants including letters, telephone, and internet. Moreover, all
malpractices of threatening, attacking, or retaliating against whistleblowers
has been prohibited, earnestly protecting their rights from infringement. In
2023, various levels of disciplinary inspection organizations within Air China
processed complaints and reports according to regulations, handling them
promptly and in an orderly manner.
Whistleblower Protection Initiatives
● The whistleblower's name, employer, address, the content of the public
compliant and other relevant information must be strictly kept confidential.
● It is strictly prohibited to inform the public compliant materials and the
whistleblower information to the reported organization or personnel.
● Public compliant receival or verification efforts should be carried out
without revealing the identity of the whistleblower.
● The whistleblower's personal information such as name and employer should
obtain the consent before publicizing.
Anti-corruption Training and Activities
To cultivate a clean business environment and deepen the roots of a clean
culture, Air China formulated the 2023 Clean Education Work Plan for the
Company, conducting integrity training for all employees. Additionally, Air
China continuously expanded the types of integrity training, developing the
Reference Catalog of Integrity Education Training Courses and the
Comprehensive List of On-site Teaching Resources for Integrity Education to
diversify educational forms.
Anti-corruption Training at Air China
● Launched the fourth "Promotion and Education Month of Integrity
Development", and held a warning education conference.
● Carried out the "Sending a Family Letter on Integrity" activity to
encourage discipline inspection members to maintain their integrity.
● Organized the viewing of trial videos and special educational films about
anti-corruption.
● Launched the "Discipline and Law Micro-Lecture" column on our WeChat
Official Account "Clean Air China", and published four issues of discipline
and law education materials and 20 articles on discipline and law knowledge
analysis.
● Organized the viewing of trial videos and special educational films such
as "Forever Blow Bubbles".
● Established a bi-weekly supervision mechanism for issues identified by the
Party committee, regularly supervising and implementing rectification.
● Focused on the practical work of discipline inspection to conduct
specialized training, with a total of 845 person-times by discipline
inspection members at all levels of Air China throughout the year, constantly
enhancing the capability of discipline inspection members to perform their
duties in accordance with regulations and laws.
● In 2023, departments of Air China conducted a total of 2,426 warning
education activities, covering 101,400 person-times; organized learning of
relevant laws and regulations 2,022 times, covering 94,600 person-times; held
1,047 activities on the theme of clean culture development, covering 61,900
person-times; organized thematic promotion activities of the Company's
tradition for 1,378 times, covering 86,600 person-times, with the total
activities covering more than 360,000 person-times.
1.3 Advancing Technological Innovation
Air China continuously optimizes the technological innovation management
mechanisms. By strengthening its own innovation capabilities and increasing
R&D investment, the Company has attracted a large number of high-quality
innovative talent. Currently, Air China's technological innovation efforts
have successfully transitioned from the system establishment phase to a stage
that places greater emphasis on enhancing efficiency. In 2023, Air China's
R&D investment reached RMB 409 million, accounting for 0.29% of
its revenue.
Innovative Development
● Air China has established a "3+9" innovation
laboratory/engineering technology center system, dedicated to creating an
innovation platform focused on the forefront of civil aviation technology and
the frontline needs.
● The innovation work management platform has been launched,
covering horizontally three major innovation channels: innovation
laboratories/engineering technology centers, mass participation innovation,
and innovation bases. It vertically spans the entire project lifecycle
management from idea collection to the transformation of innovative results.
This platform provides strong support for Air China's optimized configuration,
efficient operation, and collaborative progress in the innovation ecosystem.
● Air China actively advances the application of the BeiDou
Navigation Satellite System in civil aviation, marking the first demonstration
of aircraft tracking and monitoring based on BeiDou positioning and short
message communication.
● In collaboration with the Commercial Aircraft Corporation of
China, Ltd. (COMAC), Air China advances the modification of the ARJ21 series
aircraft derivatives, accelerating research and innovation in onboard
equipment, and supporting the development of China's domestic passenger
aircraft.
Case: Air China at the 2nd National Craftsman Innovation Exchange Conference
The 2nd National Craftsman Innovation Seminar and National Craftsman Forum was
held in Beijing from July 28th to 30th. Air China presented "Aircraft Cross
Fueling System", "Air China In-flight Network Service", "Air China Cultural
and Creative Products", among other 7 innovations, making a splendid
appearance at the conference.
Case: Air China's First "Maker Boot Camp" Training Event
On April 10, 2023, Air China's first "Maker Boot Camp" training event kicked
off at the Civil Aviation Management Institute of China. The participants were
representatives from the top ten project teams of the Company's innovation
competition and the "Creative Imagination" semifinal project teams. Over the
four days, the participants engaged in various learning activities, including
theme lectures, group discussions, team building, external visits, and
exchange talks. The boot camp invited 10 experts in the field of innovation to
discuss and refine the top ten projects of the innovation competition, aiming
to support the innovative teams in competing for a place in the finals.
Case: Finals and Innovation Award Ceremony of the First Innovation Competition
Air China's first Innovation Competition was warmly embraced by young
employees with their outstanding innovative projects focusing on solving
challenging problems in production. This Innovation Competition not only
discovered grassroots innovative talents from frontline departments, such as
operations, service, marketing, and other areas, but also injected new
vitality into the Company.
Case: The Ground Service Department Successfully Hosted "Innovation Open Day
for Young Employees"
On September 21, 2023, the Ground Service Department, in collaboration with
the Ground Service Innovation Lab, organized a youth-focused event themed
"Innovation Open Day." Thirty young representatives from various operation
centers and management support departments actively participated in this
event. We guided the youth to deeply understand the power of technological
development through on-site training, sharing sessions by young innovative
talents, and thematic visits. We encouraged them to actively engage in
innovation and creativity, and become the main driving force behind the
Company's high-quality development.
Case: Air China at the Second Civil Aviation Science and Education Innovation
Achievements Exhibition
The Second Civil Aviation Science and Education Innovation Achievements
Exhibition opened at the China National Convention Center on March 23, 2023.
Themed "Smart Navigation Knows No Borders", Air China's exhibition covered
various areas including management innovation, business model innovation,
product innovation, technological innovation, and service innovation. It
showcased 21 innovative achievements in smart travel, aircraft maintenance,
environmental protection, technology support, and brand building. This fully
demonstrated Air China's commitment to implementing the new development
philosophy, pursuing the innovation-driven development strategy, enhancing
independent innovation capability, and promoting the deep integration of
innovation chains, industrial chains, and service chains.
1.4 Digital Transformation
Air China adheres to safety operations as the bottom line, passenger service
as the core, and management coordination as the foundation. The Company
advances the implementation of the Digital Transformation Action Plan
(2022-2025), deeply enhancing the development of three major digital
platforms, advancing the integration of business and technology, facilitating
the connection of business processes throughout, continuously deepening the
Center of Excellence mechanism in various fields, and comprehensively
supporting the Company's digital transformation.
Digital Safety Operation Capability Building
Air China has fully advanced the development of an operational monitoring
platform, establishing an all-element, full-chain operational monitoring and
special situation handling capability. This includes the completion of 246
functional developments and the integration of 166 data sets. Moreover, the
Company has established a flight plan backup capability, with the flight plan
creation function seamlessly replacing the SITA flight plan system. Air China
has also successfully replaced the CAAC Information Technology SOC loading
module, marking the Company's first step towards autonomy in critical
operational products. In addition, Air China has launched the FlySmart mobile
application, achieving digital display and performance analysis of flight
manuals. The Company has also been deeply involved in civil aviation data
sharing and became one of the first airlines to go live with airport support
data.
Focused on improving the efficiency of the flight crew operation resource
allocation, the Company has launched the SOC-AC customization function. The
Company has also enhanced over 160 functions of the SOC peripheral integration
system, with a focus on the special modification work of the three-tier rest
area, releasing an average of 30,000+ business class seats per month. Air
China has promoted the security air-ground linkage system to achieve full
coverage of air security information. In the Guangdong branch, the pre-flight
direct preparation application has been launched to safely and efficiently
support pilots' on-site preparation efforts.
Focused on enhancing ground operation support capabilities, Air China has
advanced the deep application of the ground support platform at the
headquarters level, continuously expanding production scenarios and delivering
32 high-value projects. The Company has also completed the establishment
project for the vehicle operation monitoring platform.
Aimed at enhancing aviation safety support capabilities, Air China has
reconstructed the aviation safety management platform, integrating
multi-domain safety management businesses. This effort has connected the full
process of flight safety management, achieved data sharing, and initiated
platform technical consultation and implementation plan formulation.
Digital Marketing Service Capability Building
Air China has fully advanced the second phase of business innovation,
achieved full-channel travel management, diversified product management and
sales, supported mixed payments and refunds, supported various marketing
activities, and undertaken call center restructuring. The first phase is ready
for launch, and the second phase of development work has been completed.
Focused on enhancing marketing and operational capabilities, the Company
has optimized the "published fare" product, launched new international brand
fares, and achieved tiered domestic FareFamily rates to help the Company turn
losses into profits. Air China has also established a customer ecosystem,
iterated and optimized functions of the Points Exchange platform,, Customer
Relation Management system and Universal Air Travel Plan system, and built an
external network agent service platform.
Aimed at improving passenger service quality, Air China has comprehensively
advanced the system establishment in the entire process of passenger services,
launched the facial recognition function in the Hangzhou lounge, piloted the
catering reservation system, and completed passenger service improvement and
management enhancement tasks for the passenger notification project. The
Company's baggage full-process tracking system has provided baggage inquiry
services for 53 stations. Air China has also extended the service knowledge
base to 13 units, and its self-service itinerary printing function has saved
RMB 5.2608 million in mailing costs.
Digital Collaborative Control and Innovation Capability Building
Air China has advanced the establishment of the Air China Network Academy
platform, integrating the entrance to the online learning platform, and
solving the problem of insufficient coordination in online training.
Air China has promoted the capital management system to provide significant
system support for meeting the final verification of the central enterprise's
treasury system construction in 2024. The Company has also advanced the
development of the tax management project, launched the invoice management
subsystem, enhancing the invoice delivery capability and service efficiency at
the business front end. In addition, Air China has deepened the application of
the procurement management platform, effectively supporting the implementation
of new business.
Focused on improving internal control and regulatory services, the Company
has launched an overseas safety guarantee emergency command system. It has
completed 13 tasks for enhancing the functionality of the state-owned assets
supervision system, organized and conducted the first phase acceptance
inspection of the special action by the State-owned Assets Supervision and
Administration Commission, achieving an "excellent" evaluation. In addition,
the Company has launched the investment management system to achieve full
life-cycle control and integration of investment information. The Company has
also advanced the development and implementation of the electronic signature
management system to advance the intelligent management of contracts.
Air China has deepened the application of Wing of Air China, focusing on
supporting production and collaborative domain functionality enhancement, with
170 online light applications at use.
Case: Air China's Digital Innovation Project Recognized as the "Top Ten
Typical Scenarios of National Enterprise Digital Application"
On September 5, 2023, Yan Simeng, the Chief Information Officer of Air China,
led a team to the First National Enterprise Digital Application Ecosystem
Conference at the China International Digital Economy Expo 2023. Air China's
project on "Digital Assessment of Large Aircraft Flight Trajectories and
Energy Patterns" was recognized as one of the "Top Ten Typical Scenarios of
National Enterprise Digital Application" and was included in the "2023
National Enterprise Digital Application Scenarios and Solutions".
1.5 Intellectual Property Rights Protection
Air China places great emphasis on the protection of intellectual property
rights, strictly adhering to a series of international conventions, laws, and
regulations including the Trademark Law of the People's Republic of China, the
Regulations on the Implementation of the Trademark Law of the People's
Republic of China, the Patent Law of the People's Republic of China, the
Regulations on the Implementation of the Patent Law of the People's Republic
of China, the Copyright Law of the People's Republic of China, and the Madrid
Agreement Concerning the International Registration of Marks. On this basis,
Air China has developed the Legal Affairs Management Regulations of Air China
Limited and the Intellectual Property Management Measures of Air China
Limited, establishing a sound intellectual property management system to
advance IP protection efforts.
Air China actively applies for IP rights both domestically and
internationally, enhancing the protection of various types of intellectual
property including trademarks, patents, and copyrights.
As of the end of 2023
Number of patents owned by Air China both domestically and internationally
more than 320
Registered trademarks more than 2,770
Copyrights 15
1.6 Responsible Supply Chain
Enterprises along the upstream and downstream of the supply chain are not only
Air China's partners but also crucial stakeholders. We highly value the
interests of enterprises within the supply chain and incorporate the
management of their quality, compliance, and environmental sustainability into
our own management system.
1.6.1 Supply Chain Quality Management
Air China is committed to building a "lean, collaborative, international,
intelligent, green" supply chain, strictly adhering to the Bidding Law of the
People's Republic of China, and the Regulations on the Implementation of the
Bidding Law of the People's Republic of China, and other laws, regulations and
industry standards, continuously enhancing the Air China procurement
management system. In 2023, Air China further improved supply chain-related
management, revising the Supplier Management Regulations of Air China Limited
and the Procurement Business Inspection Management Regulations of Air China
Limited, issuing the Procurement Management Platform Operation Management
Regulations of Air China Limited, establishing a comprehensive management
mechanism for the entire supply chain process and elements, clarifying the
establishment of management systems at each link, and building a sound
supplier ecosystem.
Air China pays attention to the environmental and social impacts of suppliers
and integrates the concept of sustainable development into supplier
management. Together with suppliers, we explore the basic principles of
sustainable operation based on national and industry standards, including but
not limited to employee rights protection, health and safety, anti-child and
forced labor, business ethics, and environmental protection.
Supplier Admission Rules
Based on the Supplier Management Regulations, different entry and review
requirements are determined for suppliers of different admission types,
including verifying suppliers' valid qualifications and matching service
capabilities. Moreover, we pay attention to suppliers' performance in service
experience, business ethics, environmental and social responsibilities, etc.
Establish a qualification conformity review team to strengthen the
verification of suppliers' compliance, avoiding the introduction of suppliers
that have been blacklisted.
Require suppliers to sign the Letter of Supplier Commitment Against
Commercial Bribery.
Supplier Selection and Evaluation Methods
Ensure full and fair competition among suppliers in the management of, with
operational processes meeting risk control and compliance requirements.
Develop daily performance assessment indicators for suppliers based on the
Supplier Performance Monthly (Quarterly) Statistics Table to ensure an
objective and accurate reflection of the comprehensive capability performance
of cooperating suppliers.
Implement supplier tiered management, including five levels: strategic,
preferred, qualified, restricted, and exit. Establish a supplier information
database to manage suppliers effectively in a standardized manner.
Supplier Exit Management
Regularly summarize and categorize supplier performance evaluation results
from the perspectives of product quality, service capability, and delivery
capacity, and publish the evaluation results through the supplier management
system.
Adjust the supplier level based on the evaluation results, terminate
cooperation with suppliers who continuously perform poorly in evaluations, and
implement an exit mechanism.
Number of Suppliers in Aircraft Procurement Business：
Domestic：9
Overseas：8
Number of Suppliers in Procurement Business：
Domestic：9,202
Overseas：512
1.6.2 Compliant Management of the Supply Chain
Air China actively responds to the anti-corruption initiative for suppliers,
formulating and issuing systems that cover all suppliers, such as the Supplier
Management Regulations of Air China Limited, which clearly regulate supplier
behavior and adopt a zero-tolerance stance towards corruption. Air China
emphasizes compliant operations, requiring suppliers to actively fulfill their
anti-corruption commitments to ensure the integrity and transparency of
business activities, and collectively maintain the integrity and efficient
operation of the supply chain. During the reporting period, all Air China
suppliers have signed the Letter of Supplier Commitment against Commercial
Bribery.
1.6.3 Green Procurement
Air China adheres to environmental protection principles in the procurement,
giving priority to raw materials, packaging, equipment, and office supplies
that have a minimal environmental impact. The Company encourages suppliers to
consistently improve their environmental management and reduce the ecological
footprint of the supply chain. The Notice on the Implementation of Green
Procurement covering all departments and subsidiaries , outlining the
principles of green procurement to guide employees in their purchases.
Work Principles
Under the premise of ensuring procurement compliance, Air China fully
considers environmental benefits, giving priority to environmentally friendly,
energy-saving, low-consumption products that are easy for resource recycling,
achieving a balance between economic and environmental benefits.
Procurement Control
Procurement application phase: Fully consider factors such as energy
saving, emission reduction, environmental protection, and sustainable
development; use eco-friendly alternatives for prohibited, restricted plastic
products, and products with high pollution, emissions, and energy consumption;
for projects involving technical transformations related to energy saving,
emission reduction, and pollution prevention, third-party audits must be
completed.
Project research phase: Based on the project research, comprehensively
consider production needs, economic benefits, and environmental impacts to
determine procurement objectives and the principles, standards, and scope of
supplier selection.
Review and admission phase: Strictly review suppliers for compliance with
legal environmental requirements and qualifications.
Procurement document preparation: Review forms should include energy-saving
and environmental protection factors, such as admission eco-label
certification, energy-saving certification, and environmental management
system certification.
Performance Evaluation
Environmental protection is a key factor in supplier performance
evaluation. Based on assessment results, suppliers are classified and managed,
encouraging suppliers to continuously improve their environmental management.
Case: Air China Completes Replacement of In-flight Supplies Listed in the
Plastic Phrase-out Inventory
Following a comprehensive plan and unified deployment, Air China and Zhongyi
Aviation Investment Co., Ltd. (Zhongyi) conducted a joint review of the
inventory of single-use plastic products onboard, including items such as
packaging bags for amenities, catering utensils, and food, covering 147 types
of materials. Through service meetings and relevant documents, we identified
52 types of in-flight plastic-restricted products that required replacement
and facilitated communication between Zhongyi and suppliers regarding
alternative packaging solutions for onboard items like blankets, towels,
napkins, tablecloths, and coasters. According to the feedback, Air China
completed the alternative products procurement, ensuring the new packaging
products could be launched as planned.
On December 7, 2023, during the National Public Procurement Industry Annual
Conference and the 9th National Public Resources Trading Forum, the national
annual selection for public procurement was held. The Company's procurement
management platform was awarded the "Digital Procurement Innovation Platform"
prize.
2. Safety Development
SDG 3: GOOD HEALTH ANG WELL-BEING
SDG 9: INDUSTRY INNOVATION AND INFRASTRUCTURE
SDG 11: SUSTAINABLE CITIES AND COMMUNITIES
SDG 12: RESPONSIBLE AND PRODUCTION
Air China is founded on the "14th Five-Year Plan" development plan, which
firmly establishes a people-centered worldview and a profound grasp of Air
China's unique mission. It coordinates safety management, safe operations, and
safety culture development, consolidates safety development successes, firmly
holds the bottom line of safety development, ensuring absolute safety in
aviation operations and the absolute safety of people's lives.
The "14th Five-Year Plan" in the Safety Scope
Continuing to improve the flight training system
Optimizing the aircraft maintenance system
Strengthening team work style construction and vocational skills training
Implementing the three-year action plan for special safety rectification
Improving the safety operation management system
Deepening the construction of the safety management system
2.1 Safety Management
Air China earnestly complies with the laws and regulations such as the Work
Safety Law of People's Republic of China and the Civil Aviation Law of
People's Republic of China, actively responds to the Civil Aviation
Administration's Regulations on the Management of Dual Prevention Mechanisms
of Graded Control and Hidden Danger Investigation and Governance of Civil
Aviation Safety Risks, and maintains a high level of vigilance against
potential safety risks in daily operations through refined management, thus
overall improving the level of safety management.
In the Company's "14th Five-Year Plan," the annual target in the safety field
is to have a transport aviation accident rate below 0.11. With the recovery of
the Company's flight volume in 2023, Air China's fleet , flight hours, and
flight numbers have all increased, . Aiming to further enhance safety
operations and management levels and continuously improve safety quality, the
target Incidents rate of air transportation per 10,000 flight hours for 2023
was raised to 0.08, through comprehensive analysis and judgment. In 2023, Air
China's incidents rate of air transportation per 10,000 flight hours achieved
a value of 0.007, effectively achieving the Company's safety goals and showing
a decrease compared to 2019.
Air China's Annual Safety Targets Completed Achievements in 2023
• Eliminate major transportation aviation responsibility √
accidents.
• Eliminate hijacking, bombing, and other in-flight terrorist √
incidents, and prevent serious aviation security responsibility accidents.
• Prevent major aviation ground accidents and massive aviation √
maintenance accidents.
• Accountable incidents rate of air transportation per 10,000 flight √
hours did not exceed 0.08, with the severe accident rate not exceeding 0.07.
2.1.1 Safety Governance Structure
Air China has established a sound safety management system based on the
Regulations on Operation Qualification of Large Aircraft Public Air Transport
Carriers (CCAR-121) and the Provisions on the Administration of Civil Aviation
Safety (CCAR-398). This system includes a production and operation system and
an independent safety supervision system that exists outside the Company's
production and operation system. The latter focuses on fulfilling safety
supervision and management responsibilities.
Additionally, we regularly undergo external audits such as the IATA
Operational Safety Audit (IOSA) and the IATA Safety Audit for Ground
Operations (ISAGO). We follow audit plans and address audit findings one by
one to enhance the Company's safety management system. In 2023, all findings
from the IOSA audit were closed on time, and both IOSA and ISAGO registration
qualifications remaining valid.
2.1.1.1 Safety Operation System
Aviation Safety Management System Building on the previous three-tier risk control mechanism, in accordance
with the requirements of the Civil Aviation Administration's regulations, we
have established a comprehensive dual-prevention mechanism, integrating safety
classification control and hazard inspection organically.
Continuously improving the QBD system application, integrating and
synchronizing QAR data to achieve dynamic restoration of the flight process,
providing intuitive flight quality information for individuals and fleets.
Gradually realizing personalized training, combining artificial intelligence
and other technologies to further explore the value of data, conducting trend
analysis of common flight risks, and providing panoramic data services for
safety management and flight training.
To promote the digital transformation of aviation safety management, the
Aviation Safety Management Department and the Information Management
Department have jointly established a working group to interpret regulations
and policies, conduct industry research, and sort out internal needs. In 2023,
we collaborated with seven suppliers for technical consultations, promoting
project initiation and development to enhance data-driven preventive risk
control capabilities.
Flight Training System According to the flight training work plan, we have integrated flight
training resources to ensure that the pilot training progress meets the
demand, providing assurance for flight operation capability and continuous
qualification.
In terms of critical flight crew team building for flight systems, in 2023,
we hired/rehired 405 flight inspectors and 25 technical pilots for various
aircraft types, successfully completing the team building for each aircraft
type.
In accordance with the latest policy requirements from the authorities, we
have updated the Standard Operating Procedures (SOP) and training syllabi for
each aircraft type, as well as flight instructor manuals and flight inspector
manuals, ensuring that flight personnel training and technical inspections
comply with regulatory requirements and company quality management standards.
Operational Control System Revised the Operations Control Center Quality Inspection Workgroup
Management Regulations, integrated safety hazard investigation and management
work, and through the establishment of a professional and efficient quality
inspection team, completed inspections for 561 projects involving 633
person-times from 8 business departments, continuously enhancing risk control
capabilities.
Refined the Air Operator Certificate (AOC) disposal procedures and
checklists based on the Emergency Response Manual, and formulated the AOC
safety-related abnormal event disposal management procedures and aircraft
in-flight fault disposal procedures as planned. Also revised the Emergency
Event Disposal Level Table, detailing the classification standards, hazard
degree, and response levels for different levels of events.
Released the Flight Operations Data Analysis Management Measures,
standardizing the use of operational data, promoting data sharing, and
enhancing the capability for analyzing normal flight data.
Aircraft Maintenance System In terms of maintenance production management, we improved the
implementation principles for C checks in the Air China fleet, established
maintenance capability plans for each route unit, and set development goals
for C check maintenance capability in 2024, while continuously advancing the
development of weekly plans and operational data systems.
In maintenance engineering management, we completed a research report on
the current status of configuration management in the Air China fleet. We
focused on potential risk points in stages such as selection, introduction,
operation, and retirement, and based on the research results, formulated
practical and feasible solutions.
In maintenance safety and quality management, we identified 10 key risks at
the Company level and established corresponding key risk lists.
2.1.2 Emergency Management
Air China attaches great importance to emergency management work, continuously
improves the emergency management system, and enhances the response capability
to sudden events. We ensure the safety of passengers and team members through
proactive prevention and training, as well as post-incident rectification. We
have completed the revision of relevant systems such as the Company Overall
Emergency Plan, Emergency Response Manual, Operation Manual, and AOC Flight
Abnormal Situation Handling Procedures. We have also published the Air China,
Shenzhen Airlines, Shandong Airlines Operations Control Department AOC
Construction Communication Sharing Mechanism, deepening the sharing of
emergency and special situation information, achieving full sharing of data
and information, and enriching the event scenarios and disposal experience of
each airline's operations department. Additionally, we have established a
special emergency drill group, implemented the hazard investigation and
rectification plan, and successfully organized two emergency drills in June,
which was also the Air China's Safety Production Month, and in December.
2.1.3 Safety Management Priorities
Special investigation and rectification of major safety hazards:
Key leaders conduct monthly on-site inspections to develop work plans, adhere
to checklist-style management, and dynamically eliminate safety hazards. We
have organized inspections and rectifications for activities such as hot work
operations, outsourcing, and leasing, continuously improved the emergency
response plan system, actively conducted emergency rescue drills, and
constantly enhanced safety management capabilities. As of the end of the
reporting period, the Company has not identified any major safety hazards, and
100% of the general safety hazards discovered during inspections have been
rectified on schedule.
Comprehensive resumption of flights and production:
We have made every effort to ensure the safe and orderly resumption of
flights, with a focus on resuming operations on international routes. We have
completed the 13th phase of special risk assessment to ensure that our
production support capabilities match the actual flight operations. We have
also upgraded and optimized the engine anti-shutdown management system,
rigorously controlled major technical issues with the engines, and
successfully deployed ARJ21 aircraft for operations at Chengdu Tianfu
International Airport.
CAAC safety supervision implementation and rectification:
The Company's Party committee promptly studied the spirit of Director Song
zhiyong's speech from the Civil Aviation Administration and the requirements
outlined by the supervisory group. A comprehensive deployment was made by
establishing a leadership group and three special working groups, and
implementing corrective action plans along with three special checklists. Each
investment enterprise conducted a thorough comparison with the Company's
rectification plan, formulated measures, continuously improved the safety
production system, and enhanced the overall safety production management level
of the company.
Implementing annual safety management enhancement action:
According to the requirements of the "Six Practical Enhancements," a
leadership group led by the Company's main leaders and daily work institutions
has been established. An action plan has been issued, and each unit has
refined and formed a list of work tasks. We systematically reviewed the
shortcomings and weaknesses, carried out rectification one by one, and
enhanced system linkage. Around the 22 main tasks in six aspects, we have been
promoting the implementation of actions in stages throughout the year,
comprehensively enhancing the construction of safety production capabilities.
Advancing the SMS-DG system construction:
We have improved the SMS-DG manual and work procedures, strengthened personnel
training, organized annual hazardous materials air transportation safety
management reviews; we have implemented a dual-prevention mechanism for risk
control and hidden danger investigation, conducted differentiated supervision
and inspections on 18 units inside and outside Beijing, released risk alerts
for outsourced management of hazardous materials air transportation, and
organized personnel qualification compliance self-inspections; we have played
a role in safety education and advocacy, revised training materials, and
redesigned the hazardous materials education section.
Deepening the construction of aviation security management system:
We have organized aviation security tests and air defense drills, established
risk control and hazard remediation checklists, enhanced the emergency
response system for security, and strengthened the supervision system for
investment enterprises; we have advanced the crackdown on "air rage" incidents
in a deep and comprehensive manner, developing action plans, establishing a
rapid handover mechanism for disposal, conducting specialized training and
vocational skills competitions; we have conducted fire inspections,
firefighting and rescue drills, and revised fire emergency plans for
buildings, ensuring that key personnel in fire management positions are
certified to their posts.
Safety Operation Performance
In 2023, Air China successfully completed various critical transportation
tasks. During the reporting period, We supported a total of 15,505 flights for
the "Spring Festival" travel, 145 flights for delegates and representatives
during the "Two Sessions," 57 flights for the Belt and Road special events, 32
flights for the pilgrimage charter missions, 339 flights for the Chengdu
Universiade, 474 flights for the Hangzhou Asian Games and Asian Para Games,
and completed 98 flights for humanitarian aid and other major tasks with a
"zero-error" record, successfully fulfilling flight transportation and
security tasks.
2.2 Employee and Passenger Safety
2.2.1 Flight Safety
Strict control of training quality
We have enhanced training efforts specifically tailored to flight recovery.
This includes a comprehensive review of personnel qualifications and efficient
organization of qualification-related training to ensure that flight crews are
adequately prepared for route operations. We also focus on the entire process
of flight operation, organize and carry out training to enhance manual flying
capabilities, ensuring that the crew's qualifications and abilities are
competent for route operations.
We have maintained the system of thorough theoretical examination, enhanced
management processes during simulator training, standardized teaching
materials, strictly controlled key aspects such as training preparation,
implementation, and review, and comprehensively implemented training quality
assessment and verification.
Strengthening key technical teams
We have strictly controlled the training of captains, ensuring that the
captain's team has the competence to guarantee safety in their positions, and
to lead the development of the co-pilot's work style and capability
improvement from top to bottom.
We have strictly adhered to regulations governing inspectors, instructors,
and captains, and implement a standardized mechanism for selection and
retirement management.
2.2.1 Cabin Safety
We have enhanced air defense contingency plans for special routes,
strengthened air defense safety education and outbound team dispatch,
reinforced "triple coordination," implemented company service dispatch
requirements, increased cabin inspection efforts, and ensured effective cabin
order management.
We have organized special operations to legally address disruptive behavior
on flights, standardized handling procedures and communication techniques,
strengthened coordination between air and ground personnel, and properly
managed disruptive behaviors on board.
We have enhanced risk alerts for industry-related unsafe events such as
explosive threats, onboard lithium battery smoke and fire incidents,
unprepared emergency evacuations, and conducted pre-flight tabletop exercises.
We have also implemented safety training for aviation security and tabletop
exercises.
2.2.2 In-fight Food Safety
Air China has prioritized "food safety" as a core principle and has
established a comprehensive food safety management system. The Company
actively conducts employee training to enhance their hygiene awareness and
food safety knowledge. During the reporting period, Air China continued to
advance ISO 9001 quality management system, FSSC 22000 food safety management
system, and HACCP system certification. By improving its food safety
management level, the Company ensures the food safety of in-flight meals.
2.2.3 Ground safety
Air China has established internal regulations such as the Ground Services
Department Aviation Safety Management Manual, Ground Services Department
Aviation Safety Management Procedures, and Ground Services Department Safety
Practitioner Work Style Long-Term Mechanism Construction Implementation Plan
for ground safety. These regulations aim to improve the three-tier SMS risk
control system, strengthen hazard identification and control, and clarify fire
safety responsibilities. Additionally, we conduct annual safety management
enhancement activities to reinforce employees' safety development concepts and
bottom-line awareness, providing passengers with reassuring and high-quality
ground services.
Case: Ground Safety Management
In 2023, the Ground Services Department carried out the selection of "Safety
Model", selecting a total of 188 "Safety Model" employees and supervisors,
along with 12 exemplary safety teams, to further motivate supervisors and
employees who demonstrate outstanding performance in daily safety work. We
actively promoted the "Praise for Safety Behavior" initiative, sending out 186
praise cards to inspire excellent employees. In addition, by effectively
utilizing resources from all parties, we expanded the platform for safety
culture activities, continuously strengthening the work style of safety for
employees, promoting the development of their proactive safety awareness and
behavior, and creating a positive and active safety culture atmosphere.
Case: Safe Handling of Aircraft Tug Driver in Response to Line Vehicle
Overtaking
On December 9, 2023, a tractor driver from Ground Services Department was
tasked with towing an aircraft for departure. While following instructions
from maintenance personnel to push the aircraft with the nose facing south,
the driver noticed a scheduled bus from a foreign airline driving from west to
east behind the aircraft and immediately applied emergency brakes, allowing
the scheduled bus to pass before pushing the aircraft to the designated
position. The tractor driver demonstrated strong safety awareness, remained
focused during the operation, maintained careful, and appropriately handled
the situation when faced with a special circumstance, contributing
significantly to the safety protocols and practices during the production
process.
2.3 Safety Culture
Air China is committed to building and promoting a culture of safety by
enhancing employee training, improving technical proficiency, and
strengthening safety management, ensuring that every employee deeply
understands the importance of safety. Air China integrates safety culture into
every aspect of work, striving for rigor and reliability in flight,
maintenance, service, and other aspects.
2.3.1 Safety Culture Building
Air China profoundly grasps the fundamental principles and guidelines for
safety work. The Company has developed the 2023 Air China Safety Communication
Education and Cultural Style Construction Plan to meet the requirements of
civil aviation safety culture and style construction, based on the
practicality and features of safety production. We considers the development
of a safety culture and style to be a cornerstone project for fully promoting
safety governance and management, and strives to apply it effectively.
Safety culture system construction In accordance with the Civil Aviation Administration's Guidelines for the
Construction of Long-term Mechanisms for Safety Culture among Civil Aviation
Workers and the Opinions on Strengthening the Construction of Safety Culture
in the New Era of Civil Aviation, Air China issued the Implementation Plan for
the Construction of Long-term Mechanisms for Safety Culture among Safety
Personnel. This plan detailed and improved the normalization management of
safety culture construction among the Company's safety personnel and safety
culture development systems.
We established a mechanism for identifying, quantitatively evaluating, and
managing the safety culture issues. Each leading department of business
management units should establish a comprehensive and sound typical safety
culture issue list and identification process, including flight, cabin
service, aircraft maintenance, operations control, air security and safety
management to identify and detect working style issues and establish
quantitative management forms.
We implemented the incentive mechanism, regularly sorted out unsafe events. In
accordance with the Aviation Safety (Security) Reward and Punishment
Management Standards, we timely praised outstanding employees and units that
strictly followed manuals and regulations in production and operation,
actively cultivating the safety awareness of all employees and creating a good
safety atmosphere.
Safety culture activities The Learning Content is compiled and published, for studying General Secretary
Xi Jinping's important view about aviation safety production, civil aviation
work, and state-owned enterprise reform and development that closely related
to Air China's work.
Organizing activities such as"Safety Lecture Hall", "Safety Production
Discussions", "Pre-shift Meetings" and "Case-based Training", safety-themed
Party courses, and thematic debate meetings to provide various opportunities
and platforms for safety directors at all levels to talk about safety and for
all employees to discuss safety and learn from experiences.
Making safety culture construction as part of the safety training curriculum,
developing the course of Safety Culture Construction and Long-term Mechanism
Construction, and conducting specialized lectures on topics such as
"Construction of Safety Culture in the New Era of Civil Aviation" and
"Analysis of Typical Cases of Safety Culture"to further promote the
ideological awareness and behavioral consciousness of safety personnel to
develop good safety culture.
● Organizing a themed essay contest on "Resolutely Upholding the
Bottom Line of Aviation Safety " .
● Conducting the "Safety Commitment and Practice" activity through
safety manager lectures, poster signing, and signing of electronic commitment
letters.
● Reviewing educational videos such as Everyone Talks About Safety,
Everyone Knows Emergency and Special Inspection and Rectification Action for
Major Accident Hazards to firmly establish safety bottom-line thinking and
awareness of red lines.
● Closely focusing key tasks, difficulties and hot spots of the
industry safety work, regularly reviewing safety work instructions and
guidance spirits, using platforms like public accounts, publications, and
display boards to establish clear guidance to learn in multiple forms.
● Organizing safety warning education lectures, conducting training
for flight crews, maintenance personnels, and ground support personnels
involved in parking apron operation, and conducting activities such as "Safety
and Health Knowledge Contest" to create a good safety atmosphere of "Learning,
Helping, and Outstanding."
2.3.2 Safety Training
Based on the Training Management Manual, Air China is committed to providing
comprehensive and professional safety training for its employees, ensuring
that they maintain a high level of safety awareness in the complex and
ever-changing aviation environment. We utilize face-to-face and online live
training to disseminate a broader and deeper safety culture, aiming to create
a highly skilled and efficient team. Air China invested approximately RMB 222
million on training in 2023 to maintain specific qualifications for the
Company's employees.
Safety Training Performance Data 1 (#_ftn1) for Air China and Subsidiaries in
2023
Average qualification training hours divided by specialty（10,000
person-hours）
Flight training：61.7
Flight attendance training：119.0
General training for ground workers：43.5
Total qualification training hours for pilots（10,000 person-hours）
Safety training：34.7
Flight simulator training：18
Hazardous goods retraining：3.8
Emergency retraining：5.2
Total qualification training hours for the flight attendants（10,000
person-hours）
Safety training：103.1
Hazardous goods retraining：7.1
Emergency retraining：8.8
Total qualification training hours for the ground workers（10,000
person-hours）
Safety training：38.5
Hazardous goods retraining：5.0
3. Green Operations
SDG 6: CLEAN WATER AND SANITATION
SDG 7: AFFORDABLE AND CLEAN ENERGY
SDG 13: CLIMATE ACTION
SDG 15: LIFE ON LAND
The "14th Five-Year Plan" in the Environmental Scope
1. Proactively support the "dual carbon" strategy of "carbon peaking and carbon
neutrality"
2. Improve the management system, and enhance management ability
3. Strengthen energy management to achieve low-carbon development
4. Fight the battle of pollution prevention and control, and defend the blue sky
continually
5. Shape an image of a green state-owned aviation enterprise and demonstrate our
corporate social responsibility
Air China has committed to the concept of "green operations and sustainable
development," seizing the opportunities provided by national development
strategies and responding to the national call for low carbon. We highly
concern about climate change and its consequences, standardized and optimized
the environmental management system, strengthened energy resource management,
strictly limited pollutant emissions, and emphasized the development of
low-carbon environmental awareness. Therefore, we could achieve green and
low-carbon development, while continuously increasing economic efficiency.
3.1 Improvement of Environmental Management System
Air China strictly implements laws and regulations related to environmental
protection, actively carries out the construction of energy-saving,
environmental protection, and environmental management systems, making the the
Company's environmental management systemically, wholly, and uniformly. In
accordance with laws and regulations such as the Energy Conservation Law of
the People's Republic of China, the Environmental Protection Law of the
People's Republic of China, and the Circular Economy Promotion Law of the
People's Republic of China, we have formulated internal policies including the
Air China's Environmental Management Manual, the Management and Review
Procedures for Environmental Management Systems, Identification, Evaluation,
and Update Management Procedures of Environmental Factors, Energy-Saving and
Environmental Protection Management Methods, Energy Conservation and
Environmental Protection Training Implementation Rules, Energy Conservation
and Environmental Protection Supervision Implementation Rules, Energy
Conservation and Environmental Protection Assessment and Reward and Punishment
Measures, and Carbon Emissions Management Implementation Rules, integrating
environmental management into all aspects of our daily operations. We have
improved the environmental governance structure, established a Leading Group
for Ecological and Environmental Protection and its office, and regularly held
annual green development meetings to enhance the effectiveness of
environmental protection work.
We continue to strengthen environmental management and supervision, conducting
annual assessments and inspections on emissions produced during production and
operations to ensure compliance with regulations. We have also developed
internal management systems such as the Air China Emergency Response Plan for
Environmental Emergencies, Management Procedures for Wastewater, Waste Gas,
and Noise Emissions, and Solid Waste Management Procedures. In the Beijing
area, we have carried out emergency response drills in 7 on-site disposal
scenarios, including those related to boilers and sewage, to enhance our
employees' emergency response capabilities to sudden environmental incidents.
We have incorporated energy conservation and environmental protection into our
performance assessment management system, setting and detailing performance
assessment targets and tasks for energy conservation and environmental
protection. We have promoted the signing of the Energy Conservation and
Environmental Protection Responsibility Letters by various entities, and the
Office of the Leading Group for Ecological and Environmental Protection scores
the completion of tasks by the entities based on the Energy Conservation and
Environmental Protection Assessment and Reward and Punishment Measures,
linking it to the salaries of the heads of each entity. We have also
established an environmental protection incentive and punishment mechanism,
commending entities and individuals who have made outstanding achievements in
energy conservation and environmental protection, and holding violators
accountable and imposing fines on them.
The Company commended 10 Advanced Groups for energy conservation and
environmental protection.
The Company commended 47 Advanced Individuals for energy conservation and
environmental protection.
The rate that entities of environmental management system receiving internal
audits is 100%.
Air China has passed the ISO 14001 environmental management system
certification and carried out external and internal audits of the
environmental management system in 2023, focusing on deepening the
construction of the environmental management system. According to the Air
China Environmental Management Implementation Plan for 2023, we conducted
internal audits of the environmental management system in August 2023. The
internal audit team conducted audits on 10 key entities and 8 subsidiaries,
issued internal audit reports, and continuously promoted improvements to
related issues.
3.2 Addressing Climate Change
Climate change is a widely concerned issue in the international community. Air
China actively implements the national goals of "carbon peaking and carbon
neutrality," paying great attention to the risks and opportunities brought
about by climate change. Referring to relevant policies and guidelines such as
the 14th Five-Year Plan and China's Policies and Actions for Addressing
Climate Change (2022), with references to the framework and recommendations of
the Task Force on Climate-related Financial Disclosure (TCFD), Air China
incorporates climate change response into its corporate strategic planning,
comprehensive risk management system, and daily operational management,
contributing to the global response to climate change.
3.2.1 Climate Governance
Air China has been improving the top-level administration of climate
governance. It has established a Carbon Peak and Carbon Neutrality Leadership
Group, which is also served by the Leading Group for Ecological and
Environmental Protection. The Chairman and the President serve as the leaders
of this group, with members including the heads of the main entities within
the group and key business personnel, who are responsible for deliberating on
specific tasks related to climate change response, energy conservation and
emission reduction, and ecological and environmental protection. The concept
of responding to climate change is integrated into every aspect of the
Company's governance, comprehensively advancing the implementation of our
dual-carbon strategy and climate risk response affairs. We have improved the
environmental management reporting mechanism, set up special working groups,
and report work ledgers to the Office of the Leading Group for Ecological and
Environmental Protection quarterly. Meetings are held as needed based on work
progress, and the office regularly reports to the Leading Group for Ecological
and Environmental Protection on the previous year's work summary and the key
tasks for the current year.
At the same time, as an advocate of clean energy and a promoter of low-carbon
transition in society, Air China, based on the 14th Five-Year Plan for the
Green Development of Civil Aviation, has formulated the 14th Five-Year Plan
for Green Development. This plan comprehensively promotes the implementation
of a green and low-carbon strategy, with the aim of building a world-class
green development aviation transport enterprise. We have compiled the
Company's Action Plan for Carbon Peaking, focusing on six pillars: aviation
fuel conservation, aviation carbon reduction, energy-saving technology
improvement on the ground, carbon asset reserve, new green technologies, and
green initiatives for all. Through these efforts, we strive to build a
resource-saving green enterprise and achieve green, high-quality development.
Air China's Principles of Action Plan for Carbon Peaking
• Focus on a comprehensive and truthful principle
• Focus on efficiency and reducing carbon emissions at the source
• Focus on innovation-driven and technology-led development
• Focus on openness and integration, taking multiple measures
3.2.2 Our Strategies
According to national policies and industry development trends, as well as the
dynamics between climate change and the aviation industry, Air China further
identifies the climate risks and opportunities in its operations and along the
upstream and downstream of its value chain. On this basis, we combine our
strategy and development to formulate plans and actions to respond to climate
change risks, minimizing the impact of these risks to the greatest extent.
Climate Change Risk Identification List and Response
Risk Type Specific Risk Risk Description Risk Response
Transition Risk Policy and Legal Risks Ÿ New climate-related laws, regulations, and policies impose more stringent Ÿ Strictly adhered to existing laws and regulations, adjusted strategic
requirements for the industry, such as tighter emissions restrictions on civil planning and goals in line with current trends, and developed plans for a
airlines, which may influence more costs and travel habits, thus leading to low-carbon development path.
fewer passengers and related revenue.
Ÿ Explored and optimized greenhouse gas (GHG) emission reduction paths,
Ÿ The introduction of the national "dual carbon" goals and the launch of established short-term, medium-term, and long-term carbon peaking and carbon
the national carbon emission trading market will possibly heighten carbon neutrality goals and strategies, and regularly disclosed the progress of GHG
emission requirements. If the Company is included in the carbon trading system emission reduction.
in the future, additional costs may be incurred due to the lack of carbon
quotas. Ÿ Continuously followed the existing national and local carbon emission
policies, strengthened communication with various regulatory authorities, and
provided industry suggestions and practical experience for relevant
departments.
Ÿ Changed energy schedule according to requirements, introduced new energy
technologies, and promoted the transition of our energy mix.
Ÿ Enhanced the electrification rate within the flight area, and improved
the efficiency of operational support for new energy vehicles.
Ÿ Formulated carbon trading management strategies, established carbon price
monitoring and early warning mechanisms, implemented centralized management of
carbon assets and optimized the profile of carbon assets.
Technological Risk Ÿ Aviation fuel is one of the important environmental factors for the Ÿ Implemented energy saving and emission reduction practices, improved
Company. In the context of the national "dual carbon" goals, the Company needs existing technologies, and introduced and developed new technologies.
to deploy more energy-efficient and environment-friendly technologies and
facilities and increase special investment in energy conservation and emission
reduction to reduce carbon emissions and the climate impact caused by aviation
fuel combustion.
Market Risk Ÿ The "14th Five-Year Plan" for civil aviation clearly defines the target Ÿ Continuously deepened fuel-saving measures to reduce energy consumption.
for the use of sustainable aviation fuel (SAF), but a mature industry chain
for the SAF has not yet been formed domestically. The price of such fuels is Ÿ Strengthened cooperation with industry associations, upstream and
much higher than that of conventional fuels, thus bringing additional downstream enterprises in the industrial chain, as well as scientific research
financial burden to the Company. institutions, and continuously explored the research and application of
sustainable aviation fuel (SAF).
Ÿ The Chinese civil aviation industry is in the development stage, with the
per capita number of trips significantly lower than the international level. Ÿ Comprehensively replaced aircraft Auxiliary Power Units (APUs) with
The future market demand and development potential is substantial, leading to ground power, and promoted energy mix transition.
an increase in energy consumption and carbon emissions.
Reputational Risk Ÿ In the context of climate change being a major concern, the aviation Ÿ Took the preferences and needs of stakeholders as a guide to improve the
industry's carbon emission reduction efforts are closely followed by various communication mechanism with them, and conducted regular evaluation and
stakeholders. Failure to effectively implement such efforts in a timely manner research.
will have a negative impact on the Company's public image and revenue.
• Established communication methods on the official website, App,
and other public channels, which can accept complaints and feedback from
stakeholders.
Physical Risk Acute Risk Ÿ Extreme weather events, such as typhoons, extreme rainfall and floods, Ÿ Developed special emergency rescue plans to deal with extreme weather
intensify the sudden physical risks to our daily business operations and may such as flooding, lightning, cold weather, typhoons, and heat stroke,
lead to flight delays, forced landings, or cancellations, thus weakening improving emergency response speed.
freight and passenger transportation capacity in the supply chain and
transportation network. Ÿ Adjusted the flight plan promptly. Conducted a timely assessment and
pre-analysis of changes in operating conditions by monitoring flights, took
Ÿ Extreme weather may affect aircraft performance and damage aviation measures to control flight returning and diversions, and provided support to
infrastructure, thereby affecting flight safety and reliability. the aircrews on the ground.
Ÿ Extremely hot weather may increase an airplane's fuel consumption, Ÿ Adopted models that are more resistant to high and low temperatures, and
affecting fuel efficiency. adjusted maintenance strategies in a timely manner to ensure the normal
operation of the fleet.
Ÿ The occurrence of extremely hot and cold temperatures may increase the
probability of employee health and safety risks.
Chronic Risk Ÿ Scenarios such as global warming, rising sea levels, and tidal intrusion Ÿ Deployed a professional maintenance and troubleshooting team.
may lead to high frequency and increased duration of temporary operational
disruptions and maintenance as well as more cost. Ÿ Invested more funds in R&D to improve repair and maintenance
efficiency, as well as reduced energy consumption.
3.2.3 Risk Management
Air China has established a comprehensive risk management process, fully
integrating the identification, assessment, and management of climate risks
into the Company's risk management system, effectively managing climate risks
through classification and grading.
Air China's Climate Risk Management Process
Climate Risk Identification According to national policies, industry characteristics, business models, and
other factors, we identify the physical climate risks and transition risks we
face at different stages.
Climate Risk Assessment We conduct scientific climate risk assessments and fully analyze factors such
as the probability of occurrence and the extent of impact for various types of
climate risks.
Climate Risk Management We integrate climate risk identification and management into the existing risk
management system, develop comprehensive response plans, and reduce the impact
of climate risks on the Company.
3.2.4 Our Goals
In accordance with the target of keeping a global temperature rise below 2°C
proposed by the Paris Agreement and based on the actual circumstances, Air
China has set a science-based carbon reduction target. We have formulated the
Air China Green Development and Dual-Carbon Key Task List for 2023 in
accordance with the Opinions of the CPC Central Committee and the State
Council on Completely, Accurately, and Comprehensively Implementing the New
Development Concept and Ensuring Peak Carbon Dioxide Emissions and Carbon
Neutrality, the State Council's Action Plan for Carbon Dioxide Peaking Before
2030, and the work requirements of governments at all levels and industry
regulators. This list clearly defines the overall goals for our dual-carbon
work and scientifically plans the process of GHG emission reduction.
Air China Environmental Goals
• In terms of environmental compliance, no environmental violation
shall occur.
• In terms of energy saving and carbon reduction, we will strive
to achieve a year-on-year reduction in carbon emission intensity.
GHG emissions data of Air China and its subsidiaries in 2023*2
GHG Emissions Category Unit 2023
Scope 1 CO(2) emissions (10,000 tonnes) 2,260.8
Scope 2 CO(2) emissions (10,000 tonnes) 18.3
Total GHG emissions Total CO(2) emissions (10,000 tonnes) 2,279.1
GHG emission intensity CO(2) emissions intensity (g/tonne-km) 1,058.7
Indicator Unit 2023
Owned aircraft unit 905
Introduced new aircraft unit 23
Retired old aircraft unit 12
Average age of the aircraft year 9.36
Fuel consumption intensity kg/tonne-km 0.336
3.2.5 Our Actions
Air China actively promotes the implementation of the Action Plan for Carbon
Peaking, explores carbon reduction strategic paths, improves the carbon
emission control system, enhances carbon asset management, and steadily
advances the Company's green and low-carbon development.
Air China's Carbon Reduction Actions in 2023
• Participated in the formulation of carbon market rules
Air China participated in the civil aviation national carbon market working
group, facilitated the formulation of industry rules for the market, and
conducted in-depth research on the construction of China's aviation carbon
trading management system and processes, contributing to the important role of
the civil aviation industry in the carbon market.
• Promoted carbon trading
Air China continued to carry out the construction of centralized management
capabilities for carbon trading. We unified carbon trading management and
operations, established a carbon price monitoring and early warning mechanism,
and optimized the internal control and entrusted management processes of
carbon trading. Based on multiple carbon emission management systems, we
developed and launched a carbon emission management analysis platform,
achieving the automation of carbon emission data statistics and analysis.
• Promoted the low-carbon development of the industry
Air China and its subsidiaries carried out national, Beijing, civil aviation,
and EU carbon emission reporting, verification, and compliance work. We
actively participated in policy discussions on industry carbon reduction
targets, SAF, plastic phrase-out, and other related issues. As a member of the
IATA Environment Committee, the Technical Standardization Committee on
Aviation Environment Protection of China Air Transport Association, we
actively spoke up for the civil aviation industry under the unified leadership
of CAAC.
• Supported "Carbon Neutral" flights
Air China's "Low-Carbon Green Travel Program" offers passengers
"Carbon-Neutral" services. Through the establishment of a one-stop carbon
offset platform, Air China provides passengers with carbon footprint
calculation and carbon offset service for nationally certified emission
reductions. Passengers can voluntarily participate in carbon emission
reduction projects such as domestic reforestation through flight miles or cash
payments, contributing to "carbon neutral" flights and reducing the
environmental impact of carbon emissions from air travel. As of December 31,
2023, nearly 12,000 people have participated in the "Carbon-Neutral" flight
initiative, offsetting a total of 2,500 tonnes of carbon dioxide emissions,
which is equivalent to achieving about 150 "Zero-Carbon Flights" from Beijing
to Shanghai.
Furthermore, as an airline company, Air China continuously optimizes
fuel-saving measures for flights, promotes the domestic-made SAF, actively
introduces high fuel-efficiency aircraft models, enhances the management and
control of aviation fuel efficiency, and strengthens route optimization and
other green and low-carbon measures, practicing green and comprehensive
journey services together.
Flight Fuel-Saving Highlights
l Optimizing altitudes in the flight plan: By implementing closed-loop
adjustments to computer flight plan parameters through data analysis, we
improved the conformity of actual flight altitudes. In 2023, this resulted in
a cumulative fuel saving of 1,569 tonnes and a reduction of 4,942 tonnes in
carbon dioxide emissions.
l Optimizing extra fuel in the flight plan: By analyzing flight data and
optimizing the planned remaining fuel upon landing, we saved a total of 3,930
tonnes of fuel in 2023, reducing carbon dioxide emissions by 12,380 tonnes.
l Controlling aircraft weight: Utilizing various means to monitor performance
indicators, we implemented the establishment and management of the basic
database for the aircraft, and reasonably controlled the aircraft weight based
on the aircraft type and route, saving 433 tonnes of fuel and reducing carbon
dioxide emissions by 1,364 tonnes in 2023.
l Optimizing flight routes and paths: We evaluated factors affecting
adjustments to domestic and international flight paths, optimized the
Company's domestic and international route structure, shortened the distance
of flight routes, and reduced flight time and fuel consumption. In 2023, we
saved a total of 3,744 tonnes of fuel, reducing carbon dioxide emissions by
11,794 tonnes.
l Implementing mobile map applications: By promoting the use of portable
electronic flight bag (EFB) systems for airport mobile maps, we enhanced
pilots' situational awareness during taxiing, reduced taxiing time, and
improved taxiing efficiency. In 2023, we launched mobile map data for 136
airports as well as various series and models including B737, B747, A330, and
A350, achieving a total fuel saving of 15,686 tonnes and reducing carbon
dioxide emissions by 49,411 tonnes.
l Replacing APUs with alternative facilities: We orderly promoted the
standardized, refined, and normalized management of APU alternative facilities
as much as possible, ensuring a 100% connectivity rate for the facilities, and
further reducing aircraft ground emissions. In 2023, Air China saved a total
of 105,895 tonnes of fuel by using APU alternative facilities, reducing carbon
dioxide emissions by 334,000 tonnes.
l Research and development of the Aircraft Cross Fueling System: We have
independently developed the Aircraft Cross Fueling System to achieve safe and
clean fuel transfer directly. The system can reduce the waste in fuel pumping
for aircraft model replacement, overhaul, and maintenance, reusing the "waste
oil."
Case: A green and low-carbon flight activity
In July 2023, Air China hosted the "Embracing a Low-Carbon Future with Blue
Skies" flight activity, laying a solid foundation for promoting the
normalization of the SAF commercial flight in the industry. The flight,
operated by an Airbus A350 from Hangzhou to Beijing, was fueled with a 10%
blend of domestically produced SAF, marking the first commercial passenger
flight of a wide-body aircraft using this kind of fuel in China. Additionally,
the flight offered recyclable and biodegradable in-flight supplies and
presented passengers with an "Eco-friendly Notebook" set made from stone
materials and recycled beverage bottles, further promoting green and
low-carbon travel.
3.3 Promoting the Green Operation Model
Air China implements its responsibility for green development, actively
develops an environmentally friendly industrial structure, integrates
environmental management into all aspects of daily operations, executes
various energy-saving and carbon reduction measures, carries out pollution
prevention actions, and promotes the Company's green, low-carbon, and circular
development.
3.3.1Emissions Management
Air China strictly controls the emission of pollutants, standardizes the
emission management processes and standards, improves the pollutant risk list,
and refines the emission management system and risk list. This effectively
promotes pollution management and helps take special actions to fight
pollution. We conduct regular environmental compliance assessments annually,
testing emissions produced during production and operation processes to ensure
compliance with regulations.
Waste Gases Management
Air China strictly follows the Law of the People's Republic of China on the
Prevention and control of atmospheric pollution, Integrated Emission Standard
of Air Pollutants, Standard for Pollution Control on the Municipal Solid Waste
Incineration, and other relevant laws, regulations, and standard documents. We
actively launched various emission reduction initiatives to strictly control
and manage the emissions produced during operations.
Main Measures for Waste Gas Emissions Reduction
• Regularly monitor boiler waste gases, canteen fumes, and
industrial waste gas to ensure that emissions meet the standards.
• Air pollutant control devices and online monitoring facilities
are installed.
• Ground power and air conditioners are used by all aircraft
connected to the air bridge, to reduce the usage of APUs. By December 31,
2023, Air China had signed 337 agreements of APU substitution with domestic
airports, achieving full coverage.
• Strengthen the renovation and upgrade related to vehicle
emissions at the airport, promote self-inspection on diesel vehicle emissions,
and ensure that the emissions from diesel vehicles meet the standards after
technological renovation.
• Accelerate the transition from oil to electricity. Employ new
energy vehicles for all of our civil aviation models. Adhere to the principle
of simultaneous promotion of vehicles and charging piles, and achieve shared
charging within the Company through self-built charging piles.
By December 31, 2023, the number of the diesel vehicles upgraded emission was
1,740, the number of the new energy vehicles was 1,246, and the number of
self-built charging piles was 389.
Wastewater Management
Air China strictly adheres to the Water Pollution Prevention and Control Law
of the People's Republic of China, the Integrated Emission Standard of Water
Pollutants, and the Regulation on Urban Drainage and Sewage Treatment, among
other relevant laws and regulations. We comprehensively investigate the
compliance of water pollutant emissions, promptly rectify related issues, and
ensure that water pollutants are discharged in compliance with standards.
Air China's Main Measures for Wastewater Reduction
• Sanitary wastewater is regularly monitored to ensure that the
discharge meets the standards.
• We are equipped with wastewater treatment facilities and online
monitoring devices
In 2023, we treated 640,000 tonnes of industrial wastewater, with a 100%
industrial wastewater treatment rate.
Waste Management
Air China strictly adheres to laws and regulations such as the Law of the
People's Republic of China on the Prevention and Control of Environmental
Pollution by Solid Waste, Technical Policy on the Prevention and Control of
Pollution Caused by Hazardous Waste, and Provisions on the Administration of
Urban Construction Garbage. We have established internal systems, including
Waste Disposal Management Procedures and Special Emergency Response Plan for
Hazardous Waste as regulations on managing hazardous waste temporary storage,
and on-site emergency response measures for accidents. Furthermore, we sign
the Hazardous Waste Disposal Agreement with third-party entities to strictly
regulate the process of classification, collection, storage, and disposal of
various types of waste, such as household waste, kitchen waste, in-flight
waste, and hazardous waste, in order to ensure that our waste management
follows the principles of "harmlessness, recycling, and reduction."
• Household waste 2 (#_ftn2) , kitchen waste, and hazardous waste
are sorted out and transported to the designated waste storage area for
unified recycling and treatment by third parties.
• In-flight waste is transported to the designated area of the
airport and handed over to the airport for unified recycling and treatment.
By December 31, 2023, a total of 4,015 tonnes of kitchen waste and 1,338
tonnes of hazardous waste had been disposed of properly.
Disposed hazardous waste from aircraft maintenance (tonne) 3 (#_ftn3)
Indicator 2022 2023
Waste containers and contaminants 317.8 348.8
Waste oil 191.7 185.4
Waste cleaning fluid 180.8 162.8
Waste paint and paint-bleaching liquid/slag 51.8 38.2
Waste activated carbon 163.3 162.0
Wastewater treatment sludge 90.1 180.1
Spent acid 40.9 51.0
Spent alkali 30.6 28.6
Waste mercury-containing fluorescent tubes 2.1 1.3
Waste reagents and detection solution 0.7 2.3
Waste batteries 0.9 1.3
Spent developer 0.1 0.3
Spent resin, waste rubber 0.2 1.1
Waste chemicals 0.9 0.2
Electroplating wastewater 40.5 0
Plastic Phrase-out
Air China pays close attention to the impact of plastic on the natural ecology
and has comprehensively promoted special actions for plastic and waste
reduction. A specific action plan for the management of plastic pollution has
been developed. We have set a goal to significantly reduce the consumption
intensity of disposable plastic products by 2025 compared with 2020. Following
the work plan of CNAHC Special Actions on Plastic Pollution Control
(2021-2025), we are fully implementing the phased task goals of reducing
plastic use and waste in six areas: passenger service, cargo transportation,
workplace, hotels and apartments, green procurement, and plastic waste sorting
and recycling.
Plastic Phrase-out Highlights
Passenger service l Starting from January 1, 2022, all products such as knives, forks, spoons,
cups, and stirring sticks of Air China's domestic flights and airport lounges
have been replaced with biodegradable materials.
Cargo transportation l During the transportation phase, the trial use of biodegradable plastic
tarpaulins, recyclable woven bags, and recycling boxes was implemented. As of
December 31, 2023, a total of 160 tonnes of biodegradable plastic film had
been purchased, accounting for 18% of the total plastic film purchases; 3,000
recyclable transit bags had been deployed, and 14,300 recycling boxes had been
put into use.
Workplace l Issued the Notice on Promoting Plastic Pollution Control in Offices, and
implemented plastic phrase-out and prohibition requirements in all offices of
Air China.
l Introduced environmentally friendly office supplies and offered discounts
for employees who bring their own cups to purchase beverages.
Hotels and apartments l All hotels, guesthouses, and apartments no longer actively provide six types
of disposable goods.
Green Procurement l The Notice on the Implementation of Green Procurement was issued to promote
green procurement across the Company.
Plastic waste sorting and recycling l Waste sorting and recycling facilities have been fully installed in all
buildings of the Company.
Noise Management
Air China attaches great importance to noise pollution prevention and control,
adheres to the Regulations of the People's Republic of China on the Prevention
and Control of Noise Pollution and other relevant laws and regulations,
implements the Environmental Standard of Aircraft Noise around the Airport,
improves noise emission and control management procedures, and reduces the
impact of noise on the surrounding environment and as well as the health and
safety of employees.
3.3.2Use of Resources
Air China focuses on energy savings and consumption reduction, values resource
protection and rational utilization, advocates the concept of cyclical
resource management and actively explores the use of new energy. We are
committed to creating a model of resource-saving aviation enterprise.
Water Management
Air China values the conservation and reuse of water resources, strictly
complies with relevant laws and regulations such as the Water Law of the
People's Republic of China, and has formulated Water Management Regulations to
continuously improve the water management process. In our daily operations, we
actively implement various water-saving measures, adopt advanced water-saving
and environmental protection technologies, and enhance the comprehensive
utilization rate of water resources.
Water Management Highlights
• Set up metering devices in the office area to monitor water
consumption, providing data support for further water conservation.
• Introduced municipal reclaimed water to replace part of the tap
water consumption.
• Completed the renovation of the green belts and fountain water
system in the Company's headquarters buildings. This renovation could save
about 6,000 tonnes of tap water per year.
• A 4,200 cubic meters rainwater storage pool was built for the
main parking building project of the pilots' office area in Beijing. The
rainwater recycling system is used to integrate the rainwater for irrigating
the green areas of the parking building and car washing gradually.
As of December 31, 2023, Air China and its subsidiaries had consumed 5.268
million tonnes of water in the offices, with a per capita water consumption of
51.2 tonnes.
Energy Management
Air China adheres to the concept of low-carbon and environmentally friendly
energy resource management, and strictly abides by relevant laws and
regulations such as the Energy Conservation Law of the People's Republic of
China and Measures for the Administration of Energy Conservation of Major
Energy-Consuming Entities and has formulated the Energy Conservation and
Emission Reduction Management Manual to promote the systematic development of
energy management. We actively carry out special inspections on energy
conservation and environmental protection, regularly hold annual work
meetings, develop energy conservation and environmental protection management
platforms to automatically generate various environmental data, formulate
Energy Conservation Diagnosis Work Plans, and integrate energy conservation
and environmental protection work into our production and operations. In
addition, we proactively phase out outdated equipment and processes with high
energy consumption and high emissions, introduce and promote the application
of renewable energy technologies, and accelerate the low-carbon transition of
the value chain.
Energy Management Highlights
• The lighting system in the public areas of key energy-consuming
buildings was renovated, and ordinary energy-saving lamps were replaced with
radar-sensing LED lamps.
• The Air China Aircrew Dormitory project adopted a dual-system
operation mode integrating solar heating and high-temperature steam heating to
provide hot water for domestic use. This model uses solar heating first and
then steam heating as an auxiliary heating means to effectively save energy.
• The parking building project of the pilots' office area in
Beijing is designed in the open enclosure form, maximizing the use of natural
light. This design reduces the energy consumption of indoor lighting,
ventilation, and heating to a certain extent. We actively promote the
application of new energy vehicles, improve the charging facilities and
management system for such vehicles, and accelerate their introduction.
In recent years, LED energy-saving light fixtures had been replaced more than
31,000, the energy consumption after the renovation was about 65% of before,
and the electrification rate of new introduced or updated vehicles at the
airport key areas was 100%.
Material Management
Air China values the conservation and management of aviation materials,
implements green aircraft maintenance, actively explores practices for
reducing and recycling various materials, and vigorously promotes "paperless"
travel service for passengers.
• Improved the efficiency of mechanical maintenance, continuously
optimized the process standards for controlling components without failure,,
and reduced the erroneous dismantling and replacement of aviation materials.
• Promoted the recycling of aviation materials, carried out the
disassembly and reuse of "beyond economical repair material" and increased the
purchase and use of second-hand qualified material.
• Promoted the "paperless" travel service for passengers.
In 2023, we provided paperless service for a total of 37.2 million passengers.
3.3.3Biodiversity Conservation
Air China firmly establishes the ecological civilization concept of
respecting, following, and protecting nature, strictly complying with the
Environmental Protection Law of the People's Republic of China the Law of the
People's Republic of China on Environmental Impact Assessment, the Water and
Soil Conservation Law of the People's Republic of China, and other relevant
laws and regulations. We strictly maintain the red line for ecological
protection, as well as the quality of the ecological environment and
biodiversity. We actively promote biodiversity conservation and monitoring
actions, enhance the ecological protection awareness of rangers, assist in the
publicity and promotion of public welfare activities, and facilitate the
sustainable development of the industry and society.
Case: Five-year action plan for the ecological protection of the Yangtze River
In 2021, Air China initiated a five-year action plan for the ecological
protection of the Yangtze River and established the Air China Yangtze River
Ecological Protection Fund to support local biodiversity conservation. As of
December 31, 2023, more than RMB 1 million had been invested into the fund.
As the first initiative of Air China's Guardianship of the Yangtze River
Ecology, "Guardianship of Gongga, Gathering Strength of Air China" represents
a collaboration with the Gongga Mountain National Nature Reserve
Administration in Sichuan Province. The project is located in the Ganzi
Tibetan Autonomous Region of Sichuan Province. It is designed to organize
public welfare activities such as capacity enhancement of rangers, provision
of devices, biodiversity conservation monitoring and promotion, low-carbon
concepts, and local ecological protection and restoration.
The second initiative of Air China's Guardianship of the Yangtze River Ecology
is in Wuhan, Hubei Province, where we establish the "Joining Air China in
Chasing Sturgeon in the Yangtze River" public welfare release station.
Starting with the Chinese sturgeon, we explore the path of aquatic life
conservation in the Yangtze River.
In November 2023, Air China and Mercedes-Benz launched a zero-carbon,
sustainable flight and a rare Yangtze River fish species releasing activity
together under the theme "Zero-Carbon Journey." This green and ecological
flight demonstrated the concept of "carbon-neutral flight," with all carbon
emissions generated by the flight being offset by the carbon sequestration
from the VCS forest management project purchased by Air China and
Mercedes-Benz. After the flight from Beijing to Wuhan, passengers were invited
to release rare Yangtze River fish species such as Chinese sturgeon,
long-snout catfish, and Chinese high-fin banded sharks at the Wuhan Fishery
Administration Wharf. This activity allowed all passengers to enjoy a new
"zero carbon" experience.
Air China follows national laws and regulations, local standards, and industry
requirements, and strictly carries out environmental impact assessments. We
strictly enforce environmental impact assessment for newly-built, expansion,
and renovation projects, requiring that environmental protection facilities be
designed, built, and put into use concurrently with the main project, thereby
minimizing the impact of the operation process on the surrounding natural
ecology and biodiversity.
3.4 Corporate Green Responsibility
Air China advocates for its employees to practice environmental protection and
low-carbon, green office concepts, enhancing their awareness of energy
conservation and emission reduction, and guiding them to save energy in their
work, reducing the operational impact on the environment. Every year, we
allocate special funds for environmental protection training and publicity,
enhancing employees' awareness of low-carbon development and carbon reduction.
This also helps them better understand the green and low-carbon concepts,
making the concepts a part of their mindset and actions.
Air China has established an energy-saving and ecological environment
protection statistical information system, and developed and launched an
environmental protection dictionary, providing employees with knowledge
retrieval services for energy-saving and environmental protection policies and
regulations.
We have invited experts from the National Bureau of Statistics, the Capital
Power Exchange Center, Tsinghua University, and other institutions to conduct
online and offline green-themed training sessions for key internal staff. The
main content of these sessions includes policies related to the "dual carbon"
strategy, energy conservation and environmental protection regulations, energy
statistics, and green electricity trading. A total of 133 staff members have
been trained, with a total duration of 798 hours.
The National Energy Conservation and Ecological Environment Protection
Statistical Information System has collected 104 national-level energy
conservation and environmental protection laws and regulations.
90 local-level energy-saving and environmental protection standards
7 corporate energy saving and environmental protection policies
Case: Air China releases a green and low-carbon action initiative
Air China has issued a green and low-carbon action initiative to its
employees, advocating for the establishment of green development concepts
among its staff, and the adherence to green and low-carbon office habits,
low-carbon travel methods, low-carbon lifestyles, etc. We are also conducting
knowledge quizzes on the "dual carbon" strategy, resource-saving society,
major protection of the Yangtze River, SAF, and plastic pollution control.
Nearly 40,000 employees made the green and low-carbon commitment.
Over 30,000 employees participated in green and low-carbon activities.
4. Quality Service
SDG 2: ZERO HUNGER
SDG 17: PARTNERSHIPS FOR THE GOALS
Air China will consistently provide sincere service, improve the management of
service quality, continuously innovate service products, promote digital
services, enhance service capabilities, and provide passengers with
world-class services.
The "14th Five-Year Plan" in the Service Scope
Creating World-class Services and Products
Deepening the "Three Orientations"
Practicing the "Three Comprehensive Strategies"
Customer Orientation, Problem Orientation, Value Orientation
Global Benchmarking, Full-process Governance, Endeavour throughout Entire
Chain
Static Planning→Dynamic Management
Fragmented Scene→Full-process Connection
Passively Follow→Actively Lead
Excellent service, Comprehensive and smooth service guarantee, Win-win and
efficient collaboration, Timely and accurate service, Innovative and digital
support, The trustworthy and professional team
4.1 Service Quality Management
Air China continuously improves the General Rules for Service Standard
Management and the Service Standard Document Compilation Specifications and
formulates and issues documents such as the Service Standard Document
Management Procedures, strengthening the quality management system, perfecting
the top-level design and management structure of service standard management,
promoting the digital transformation of service management, and continuously
enhancing service quality management.
Service Quality Management Measures
● Optimized the Service Quality Inspection Management Regulations,
and formulated and issued documents such as the Service Quality Management
System Usage Management Regulations and the Service Quality Risk and Hazard
Management Regulations.
● Integrated the internal audit of the service quality management
system, statutory self-examination, service presentation inspection, and
special inspection to achieve a comprehensive inspection, enhancing
organizational efficiency.
● Established and optimized the service inspection item database
system, covering all standard inspection items, while supporting the
generation of personalized inspection task lists to allow better planning of
the inspection focus.
● Formulated clear and practical evaluation criteria to ensure the
quality of inspections, and assessed each non-conforming item, observation
items, improvement suggestion, and management highlight individually.
Air China invited the China Quality Certification Center (CQC) to verify the
conformity, suitability, and effectiveness of the Company's service quality
management system in accordance with the ISO 9001:2015 standard and the CAAC's
Guidelines for the Construction of Public Air Transport Passenger Service
Quality Systems, among other requirements. This was done through interviews,
sampling, and other methods to collect audit evidence. During the reporting
period, 10 Air China subsidiaries, 7 business management units, and 3
management support divisions with audit qualifications passed the service
quality management system certification.
4.2 Safeguarding the Rights and Interests of Passengers
With the purpose of satisfying passenger needs, Air China fully ensures the
normal operation of flights, listens to passengers, strictly protects the
security of their personal information, upholds responsible marketing, and
safeguards passenger rights.
4.2.1 Guaranteeing Flight Regularity
Air China continuously carries out refined management for irregular flights.
When facing irregular flight conditions, we always center on the needs of
passengers, ensuring the normal operation of flights with efficient and
professional service.
Measures to Guarantee Flight Regularity
● Flight regularity assessment and statistics: Conducted publicity
and guidance for the assessed entities, completed the operational assessment
items and target value settings and introduced data collection and regularity
analysis projects to provide a scientific basis for the assessment work.
● Flight regularity management: Analyzed the reasons for flight
delays and discussed typical cases in special seminars to develop improvement
measures and strengthen flight regularity management.
● Irregular flight analysis: Sorted out issues with irregular
flights and prepared analysis reports to help improve management capabilities.
● Strengthening internal regularity management of the Operation
Control Center: Enhanced the communication and collaboration among various
departments involved in managing irregular flights to improve management
level.
In 2023, the flight punctuality rate* reached 87.94%, higher than the industry
average 0.14 pts; the flight execution rate was 99.2%, maintaining the same
level compared with the previous year.
4.2.2 Response to Customer Demands
Air China strictly complies with national and industry-related laws and
regulations, revises internal systems such as the Complaint Management
Regulations, the Passenger Satisfaction Survey Management Regulations, the
Service Reward and Punishment Management Regulations, and the Management
Regulations for Service Remediation Authorization, and improves the protection
of passenger rights and the complaint management mechanism, listening to every
passenger and respecting their needs.
Air China also has established a rigorous complaint response and feedback
process. We have divided the process into three levels of management. The
first-level departments are responsible for establishing and improving the
Complaint Management Regulations and improving the overall service process.
The second-level departments are responsible for the complaint management and
monitoring of their respective entities, while also assisting the third-level
departments in their complaint handling. In 2023, a total of 10 monthly
complaint case analysis meetings were held, 15 typical cases were reported,
and 23 dynamic service rectifications were issued, with a focus on improving
issues found in ticket service policies, cabin service procedures, and
standards for special passenger service.
Service Performance of Air China and Its Subsidiaries in 2023* 4 (#_ftn4)
International luggage loss rate (pieces/thousand passengers): 1.78
Domestic luggage loss rate (pieces/thousand passengers): 0.12
Total number of passenger complaint cases from all channels (cases): 27,000
Passenger complaint handling rate: 100%
Passengers' overall satisfaction: 88.4 points
Premium passenger satisfaction: 89.4 points
Ticket service satisfaction: 90.6 points
Ground service satisfaction: 87 points
Cabin service satisfaction: 88.1 points
4.2.3 Privacy and Data Security
Air China complies with the Personal Information Protection Law of the
People's Republic of China, the Cyber Security Law of the People's Republic of
China, and other relevant laws and regulations. We have formulated and issued
the Privacy Policy and Data Management Regulations for China National Aviation
Holding Corporation Limited and Air China Limited. These regulations cover all
business operation units, subsidiaries, and suppliers, which clearly outline
to passengers the principles, processes, requirements, and protective measures
regarding the collection, processing, use, storage, and protection of personal
information, ensuring passengers are informed and consent before any
collection, processing, and use of their information to safeguard their legal
rights and interests. Air China pledges not to rent or sell passengers'
personal information to third parties and will only provide such information
after confirming the passengers' explicit consent and only for the purpose of
completing transactions and services. Furthermore, based on the terms of the
Supplier Management Regulations, we establish management requirements for
customer privacy and data security assessment during all stages of supplier
admission and evaluation.
Air China regularly conducts passenger privacy risk assessments and has
established a Cybersecurity Management Committee as the highest
decision-making body for information security management. The committee is led
by Air China's leaders, with the Information Management Department serving as
the office to coordinate the work of cybersecurity management. The Commercial
Committee, working with specialized departments, oversees the implementation
of the privacy governance management mechanism and conducts effectiveness
reviews. During the reporting period, Air China obtained ISO/IEC 27001
certification (with a coverage rate of 100% for products and services),
PCI-DSS certification, and all core systems passed the Level 3 Certification
for system security protection. There were no data breach incidents.
In accordance with data protection and encryption policy requirements, Air
China has established a vulnerability notification and response mechanism. By
conducting security emergency drills and attack and defense exercises, we have
built a sound cybersecurity system. We have hired a third-party security team
to conduct penetration testing on critical information systems, identify
security vulnerabilities, and fix Bugs to avoid related risks.
Air China has invited several external independent auditing or testing
agencies to review and inspect the Company's information systems and policies,
ensuring the security and stability of the information systems and compliance
management. In 2023, Air China conducted one internal audit and three external
audits, including the CAAC's aviation security audit, cybersecurity level
protection assessment, IATA IOSA audit, and safety inspection by third-party
professional technical agencies, achieving a 100% compliance rate for the
rectification of medium and high-risk items.
Customer Access
Customers can authenticate their identity through self-service channels, add
or modify personal information, and cancel their accounts after password
verification.
Customers can choose not to retain the original image for facial recognition.
Passenger Privacy and Data Security Management Measures
Secure Information Storage We comply with the requirements regarding the location, method, and duration
of personal information storage as stipulated in the Privacy Policy, and adopt
technologies such as encryption and de-identification for information storage.
Internal use must go through a security and compliance review process to
protect the personal information rights and interests of passengers. Regarding
the storage of passenger information, we will store passenger information for
the shortest possible time, and upon exceeding the time limit, we will delete
or anonymize the personal information of passengers.
Technical Support We adopt multiple technical measures, including intranet access, multi-level
in-depth protection, vulnerability scanning, web application protection, and
data backup to monitor information security devices in real-time, and
implement focused management and control over critical information systems and
personnel, ensuring data security and system stability.
We receive, promptly report, and handle cybersecurity information and
intelligence from various reporting centers, ensuring timely responses to
external security incidents and vulnerability threats.
We conduct penetration tests on core business systems annually, promptly patch
vulnerabilities, and enhance security protection capabilities. We also ensure
the security of outgoing data by employing email and boundary anti-leakage
systems. In 2023, Air China carried out data security compliance assessments
for the e-commerce innovation system, comprehensively improving data security
compliance.
Specialized Training To enhance employees' awareness of protecting private data, Air China has
issued the Notice on Conducting the 2023 Data Security Inspection Work,
explaining to all employees the relevant laws and policy requirements
regarding privacy and data security.
We carry out training on phishing emails and Cybersecurity Week activities,
with the aim to enhance employees' awareness of cybersecurity and strengthen
preventive measures to ensure the security of personal and company
information. In 2023, we conducted information security awareness training for
22,708 person-times, involving 12 related entities and departments.
All outsourced personnel and suppliers must complete information security
training before starting to work in their positions to ensure they possess the
necessary awareness and knowledge of information security.
4.2.4 Responsible Marketing
Air China complies with the principle of integrity in management, strictly
follows laws and regulations such as the Advertising Law of the People's
Republic of China, and has formulated and issued internal management systems
such as the Announcement on Further Standardizing the Application of Marketing
and Promotional Materials to regulate the marketing behavior of employees. Air
China requires its marketing personnel to keep the bottom line, eliminate any
form of false marketing, and ensure that processes are standardized,
information is disclosed, and promotions are truthful. In marketing
activities, we disclose information on legal risks and activity terms to the
public, clarify the existing risks of projects, protect customers' right to
know, effectively prevent transaction risks, and avoid potential disputes and
litigation arising from inadequate information disclosure.
4.3 Sincere Service
Air China regards service quality management as a key element in enhancing
passenger experience. We gain the trust of passengers by continuously
optimizing service processes and improving the staff's service level with
sincere service.
4.3.1 Passenger Service
Air China focuses on the details of passenger service, from comfortable seats
to a rich selection of meals, from friendly cabin crew service to considerate
ground staff assistance, always committed to providing every passenger with a
warm, comfortable, and reassuring flying experience.
Air Ticket Products We have launched the ticket products suitable for group travel and the
"Dual-City Pass" product for frequent travelers between two cities, increased
travel discounts for young students and the elderly, introduced "Student Zone"
and "Senior Rights Card" products, and continuously improved user experience
to establish a solid reputation among the youth and elderly. As of December
31, our ticket products had been offered to 225,200 people.
Free Value-added Service We have launched accommodation products for transfer in Beijing, Shanghai,
Chengdu, Chongqing, Hangzhou, Wenzhou, and Tianjin, as well as the Beijing
transfer timed rest lounge product.
The limousine service for usiness and first class now supports international
airport pickup service, with Xiamen being a new location. The Mercedes-Benz
EQE new energy vehicle model is now available, covering the express line
cities.
The joint air-bus products have been launched in Shanghai, Hangzhou,
Chongqing, Guangzhou, Changsha, and Baoding. Both Beijing Capital
International Airport and Beijing Daxing International Airport have introduced
air-rail products.
As of December 31, various types of free value-added products had been offered
to 259,200 people.
Cross-airline Boarding Service We continue to expand the range of cross-airline boarding, initiating
cross-airline boarding service for domestic and international transfers via
multiple locations such as Beijing, Hangzhou, Guangzhou, Tianjin, Shenzhen,
and Shanghai to meet the diverse travel needs of passengers and continuously
improve the transfer flight service experience.
Mobile APP Ticket Change Service In April, Air China APP launched the involuntary changing application for
international and regional flights, offering self-service flight changes
within two months before or after the planned travel date of the original
ticket.
In early August, the scenario of involuntary changes being made simultaneously
to international/regional tickets for multiple passengers (including "adults +
children") was updated.
At the end of October, the application of involuntary changes being made
simultaneously to international/regional tickets for multi-trip was added to
reduce the pressure on manual services while providing users with a faster and
more convenient ticket change experience.
As of the end of December, 829 involuntary change orders for international and
regional flights had been completed.
Smart Travel Service In 2023, we fully restored remote check-in for domestic/international flights,
completed the trial operation for automatic check-in, and launched
differentiated electronic boarding passes for frequent travelers and
personalized background for express flights destinations. By the end of
December, the proportion of remote check-ins reached 54%, with a year-on-year
increase of 17 percentage points. Domestically, remote check-in was launched
at 141 airports, of which 134 airports supported QR code electronic boarding
passes; internationally and regionally, remote check-in was launched at 56
airports, of which 10 airports supported QR code electronic boarding passes.
Full-process Baggage Service In 2023, we continued to expand the range of supported flight routes, adding
full-process baggage tracking services for 23 new airports. By the end of
December, baggage status inquiry services had been launched for a total of 53
airports, including 47 domestic airports and 6 international and regional
airports. The full-process baggage tracking services had been provided 537,000
times, and 7.36 million pieces of baggage status information had been pushed
to passengers.
Scan and Pay for Excess Baggage Air China has actively implemented the CAAC's requirements for the development
of smart civil aviation, optimized the process for excess baggage charges, and
provided electronic payments for excess baggage. Passengers can pay for excess
baggage fees online by scanning a code or recognizing the boarding pass QR
code through the Air China APP, enjoying a more convenient travel experience.
By the end of December, passengers had completed a total of 3,259 online
payments for excess baggage fees.
Online Customer Service After launching the official website and the Air China APP, Air China launched
an online customer service on its mobile official website (H5 website) in
April 2023 to meet the diversified communication needs of passengers,
expanding the coverage of automated and self-service customer service. The
launch of updated frequently-used application and customer manager
system-related applications provide a easier access to the application and
ways of displaying information, enhancing the efficiency of self-service.'
Self-operated Lounge We continued to build the branded lounges, adding two new lounges in the
Hangzhou T4 domestic terminal, and one new lounge in the international
terminal, and constructed and put a new lounge in Guiyang into operation.
In both Beijing and Hangzhou, three sessions of the "Fengtinghui"
collaborative cultural exhibition were held in the Self-operated lounge.
Air China launched the first self-service access application based on facial
recognition in the domestic lounge in Hangzhou.
A children's entertainment space was introduced in the Self-operated lounge.
In-flight Entertainment On a total of 23 aircraft in the B787 and A350 fleets, we implemented the
China Red in-flight entertainment system graghical user interface (GUI).
We continued to optimize in-flight entertainment programs.
In-flight Meals We introduced new onboard dining options, including a variety of
festival-themed, Asian Games-themed meal boxes and bags for holidays and major
events.
We cooperated with the Sichuan Restaurant under the Quanjude Group to
introduce Sichuan cuisine specialties, launching dishes such as the developed
Quanjude sliced duck.
In-flight Networks Air China offered two types of network modes: in-flight cabin LAN and onboard
Internet, providing passengers with convenient in-flight network services.
Case: CA8555's Emergency Landing for a Passenger with Paroxysmal Disease
On May 4, 2023, on flight CA8555 from Wenzhou to Kunming, the cabin crew
suddenly received a distress call from a passenger: the person sitting next to
him had suddenly fallen ill and was unconscious. The chief flight attendant,
Li Yujiao, immediately reported it to the captain, Wu Xiaofeng, and mobilized
the crew for emergency rescue, while also using the plane's broadcast system
to seek medical personnel among the passengers for assistance. After receiving
treatment, the passenger slowly regained breathing and consciousness, but Li
Yujiao still knelt beside him, checking his breathing and continuously
shouting "Don't sleep" to prevent him from falling unconscious again. The
flight was still two hours away from Kunming. Considering the passenger's
health condition, the captain decided to make an emergency landing at Changsha
Huanghua International Airport. After the plane landed, the patient was
promptly transferred to a hospital by ambulance.
4.3.2 Special Passenger Service
Embracing warmth and care as its core value, Air China's special passenger
service is dedicated to creating an accessible and reassuring aviation
experience for every passenger. We not only offer a comfortable and easy
travel environment but also actively promote service innovation, providing
more convenient and caring services for passengers with mobility difficulties
and special needs.
Unaccompanied children service Air China APP has launched a booking service for unaccompanied minors.
We have optimized the meal selection criteria to ensure that non-spicy meals
suitable for children are included in the regular meal plan.
In-flight wheelchair Free in-flight wheelchair services are provided for passengers who are
physically fit to fly but do not have the ability to move independently. This
service assists passengers in moving to or from their seats on the plane,
going to and from the restroom, etc.
Baby bassinets Air China provides baby bassinets in business class, premium economy class,
and economy class on flights operated with B747/B777/B787/A330/A350 aircraft.
Special needs services We provide services such as handling check-in procedures and assisting with
luggage check-in/pick-up for passengers with hearing and visual impairments.
Small animal transportation On the Air China APP and the official website, passengers could book the
service of point-to-point transportation of small animals on flights operated
by Air China and bearing Air China flight numbers.
Case: Air China Employee Offers Help to a Blind Passenger
On February 14, 2023, in the parking lot of Terminal 2 at the Beijing Capital
International Airport, a blind passenger was found in trouble. Huang Xiaoling,
a employee from the ground service department who was off-duty at the time,
learned about the situation and offered help. With Huang's assistance, the
passenger finally reached the destination at Terminal 3 and completed the
boarding procedures.
4.3.3 Digital Service
Air China highly values the innovation and upgrade of digital services. By
introducing advanced technology and intelligent systems, we not only enhance
management efficiency but also provide more high-quality services to
passengers.
Business Innovation Air China has fully implemented the new Load Planning System (LDP) for flights
departing from Beijing starting at 00:00 on February 27. The full activation
of this system, as a key project in the digital transformation of the Ground
Service Department's Load Balance Center, marks an important innovation of
load balance work in promoting high-quality development among domestic,
international, and domestic code-share flights, providing strong support for
the construction of smart, world-class hub airports.
Marketing Service Air China has launched the "Flight Delay Service" program, which integrates
ticketing service resources from both Terminal 2 and Terminal 3 of the Beijing
Capital International Airport, as well as the Beijing Daxing International
Airport, digging the support capacity of "Two Airports" to ensure capacity and
provide guarantees through coordination. Since its initiation in February
2023, the program has facilitated smooth rebooking for 1,632 passengers
through outbound calls, achieving preliminary success.
Air China has achieved easier electronic service compensation operations
through in-depth research and has increased the usage rate of electronic
service compensation by promoting innovative methods such as notice boards,
instructional videos, and SMS notifications, winning widespread recognition
from passengers.
Full-process Service Air China promotes a one-stop service program, improving the process for
excess baggage charges to reduce the time passengers spend going back and
forth to the counter for payment and enhancing check-in efficiency.
The departure room of Air China's Ground Service Department has been
continuously advancing the "centralized departure control" program, optimizing
the full-process service chain, and improving operational efficiency and
service quality.
5. Employee Development
SDG 3: GOOD HEALTH ANG WELL-BEING
SDG 5: GENDER EQUALITY
SDG 8: DECENT WORK AND ECONOMIC GROWTH
SDG 10: REDUCED INEQUALITIES
Adhering to the principle of putting people first, Air China respects and
safeguards the rights and interests of every employee, attaches importance to
the growth and development of its employees, and considers their growth and
health as the cornerstone of the Company's development, pursuing common
development of employees and the Company.
The 14th Five-Year Plan for the Human Resources Scope
Strengthen organizational management, optimize the Group's management system Build a contingent of high-quality employees and strengthen the talent Speed up the transformation of operating mechanism and enhance the internal Improve the efficiency of human resource allocation in a systematic way and
and organizational structure development matching the Company's strategic motivation of the team promote high-quality development
5.1 Employment and Employees' Rights and Interests
5.1.1 Equal Employment
Air China strictly complies with the Labor Law of the People's Republic of
China, the Labor Contract Law of the People's Republic of China, the
Employment Promotion Law of the People's Republic of China, the Law of the
People's Republic of China on the Protection of Rights and Interests of Women
(http://en.npc.gov.cn.cdurl.cn/2022-10/30/c_891562.htm) , and other national
laws and regulations, based on which develops and keeps improving employee
management systems.
We strictly ban any form of child Labor, or forced Labor and resolutely resist
discriminatory behaviors against employees due to nationality, age, race,
gender, religion, diseases, psychological or physiological conditions, or
other factors. We resist workplace harassment and bullying, and promise to
treat every employee fairly and justly, while safeguarding the legitimate
rights and interests of employees. In the event of a violation, the Company
will handle the situation in accordance with applicable laws and regulations,
as well as relevant provisions such as the Punishment Regulations for Labor
Discipline Violation. During the reporting period, Air China had no violations
of child Labor, forced Labor, or discrimination. Adhering to the recruitment
principles of "merit-based admission and fair competition", Air China flexibly
adjusts its selection mechanism and formulates annual recruitment plans based
on the Company's development plans and current human resources situation. We
broaden our recruitment channels and make full use of internal recruitment,
campus recruitment, and social recruitment to ensure that the quantity,
quality, and structure of our talents meet strategic and business needs. In
2023, we formulated the Notice on Strengthening Open Recruitment to improve
the market-oriented employment mechanism of "inward and outward", clarifying
that subordinate units should broaden recruitment channels, implement talent
attraction and gathering measures, and continuously optimize the talent
structure.
Air China has established long-term, harmonious, and stable labor relations
with its employees, fully respecting the rights of all employees to freely
associate and engage in collective bargaining. It has formed a list of three
special collective contracts: the Collective Contract, the Special Collective
Contract for Labor Protection, and the Collective Contract for the Protection
of Female Employees' Special Rights and Interests.
Ÿ In 2023, Air China had 102,874 employees,
Ÿ Labor contract signing rate reached 100%.
Ÿ Percentage of employees covered by collective bargaining agreements is
100%
Table: Employees of Air China and Its Subsidiaries in 2023 5 (#_ftn5)
Type Number of employees Proportion
Total employees of Air China 102,874 /
Number of employees by employment type Contracted 96,305 93.61%
Dispatched 5,830 5.67%
Interns 341 0.33%
Others 398 0.39%
Number of employees by gender Male 63,305 61.54%
Female 39,569 38.46%
Number of employees by age ≤35 58,950 57.30%
36-45 29,382 28.56%
≥46 14,542 14.14%
Number of employees by region China 100,173 97.37%
Overseas 2,701 2.63%
Number of employees by profession Management and management support 12,561 12.21%
Marketing and sales 5,740 5.58%
Operation 5,429 5.28%
Ground handling 13,082 12.72%
Cabin service 26,392 25.65%
Logistics and support 6,922 6.73%
Flight crew 13,303 12.93%
Engineering and maintenance 16,696 16.23%
Information technology 1,071 1.04%
Others 1,678 1.63%
Number of employees by education Master degree and above 4,729 4.60%
Undergraduate 60,157 58.47%
Junior college 27,190 26.43%
Technical secondary school and below 10,798 10.50%
Type Proportion
Employee turnover by employment type Contracted 2.88%
Dispatched 0.30%
Interns 0.06%
Others 0.11%
Employee turnover by gender Male 1.82%
Female 1.53%
Employee turnover by region China 3.22%
Overseas 0.13%
Employee turnover by age ≤35 2.1%
36-45 0.57%
≥46 0.68%
5.1.2 Democratic Management
Air China respects the right of employees to participate in the Company's
democratic management and upholds employees' right to be informed, to
participate, to be heard, and to oversee. In 2023, we developed the List of
Matters to Be Reviewed by the Workers' Congress and the Joint Meeting of
Heads of Its Delegations of Air China Limited to orderly promote the
construction of the working mechanism for Workers' Congresses. To strengthen
primary-level democratic management, we supervise primary-level units to
establish a more comprehensive "1+M+N" system for Workers' Congresses. This
year, Air China held two Workers' Congresses, during which the Company's work
report was reviewed and approved; employee directors and supervisors were
elected, and proposals were submitted by employee representatives. In
addition, proposals from employee representatives were all properly resolved
during the reporting period.
Ÿ Held 2 Workers' Congresses in the year
Ÿ Processing rate of employee representatives' proposals was 100%
Ÿ There were 80 employee representatives participated in the training
courses
5.2 Employee Training and Development
Air China attaches importance to the growth and development of its employees,
emphasizes talent empowerment, and regards talent development as an important
driving force for the development and success of the Company. We make
continuous efforts to optimize the design of career development channels and
guide employees to improve their education and technical skills, in a bid to
achieve common development of employees and the Company.
5.2.1Training System Construction
Adhering to the training philosophy of "strengthening the foundation,
enhancing capabilities, and promoting development", Air China vigorously
promotes employee training and development, and is committed to building a
skilled, high-quality, and dedicated talent team. We further enrich the
training system covering various fields and provide multi-level and multi-form
training courses for our employees. We establish annual training plans based
on requirements for different posts and invite external experts to participate
in course design and teaching, providing targeted education and skill
enhancement courses for employees.
In this year, we revised or formulated 8 regulations on training, including
the Compliance Training Outline and the Training Outline on Work Style for
Safety Practitioners. We completed the development of a total of 32 training
programs, including training for the flight, cabin service, flight
dispatching, digitalization, and general business, and developed 156 new
courses to effectively meet the Company's training needs.
Based on civil aviation laws
Establish the training system for pilots, flight attendants, flight security
guards and flight dispatchers
Based on Air China's production needs
Establish the training system for air transport personnel, expatriate
employees and business personnel
Based on the qualification requirements of civil aviation transportation
Establish the training system for dangerous goods transportation and aviation
security
Projects for outstanding managers General quality training New employee training
Figure: Air China Training System
Leadership Training
Case: Training Programs for Young Cadres
In 2023, Air China organized and implemented 3 sessions of basic rotation
training courses for young cadres, benefiting a total of 76 personnels; We
organized and implemented a exchange training program to Macau Airlines,
benefiting 8 personnels; We also organized and implemented 1 session of the
Rolls-Royce Singapore International Training Program, benefiting 12
personnels.
Case: State-owned Enterprise Management Training Program for Senior Managers
In 2023, the Company organized and implemented 2 sessions of State-owned
Enterprise Management Training Program for Senior Managers for newly appointed
senior managers, with a total of 93 trainees.
General Quality Online Training
Ÿ We organized online learning on topics such as Carbon Peaking and Carbon
Neutrality cases and Chinese path to modernization at the China E-learning
Academy for Leadership, and more than 1,700 employees participated in the
training.
Ÿ We sorted out and updated the content on the platform of "Air China
Leadership". We have launched 9 series of online thematic courses, including
the Central Economic Work Conference, Work Safety, and benchmarking against
world-class standards. A total of 70 courses were updated throughout the year,
and the platform has accumulated 1,831 courses in total. The cumulative
learning hours on the platform throughout the year reached 98,000 hours, with
an average of 16.78 hours per employee.
Continuing Education of Employees
Program of High Education for Civil Aviation Employees
Air China continued to carry out the program of High Education for Civil
Aviation Employees to assist Air China employees in achieving a "dual
improvement" in education and ability. The program of High Education for Civil
Aviation Employees is a program jointly launched by the Civil Aviation
Administration of China and the Open University of China ,with online teaching
as its basic form, providing students with academic education and vocational
skills training through a combination of online and offline teaching methods.
The undergraduate and vocational education programs under High Education for
Civil Aviation Employees are designed to be 2.5 years. After completing the
required credits for compulsory and elective courses in relevant majors, and
passing the corresponding exams and appraisals as required, students will
receive nationally recognized graduation certificates and degree certificates
belonging to the national education series.
Ÿ In 2023, the number of Air China employees graduated was 798, 1,545
employees won the scholarship of RMB1.0642 million.
Training for Air China and its major subsidiaries in 2023 6 (#_ftn6)
Type Percentage of trained employees (%) Average training hours per employee (hours)
By rank Senior management 85.0 69.1
Middle management 57.9 39.0
Staff 77.0 48.9
By gender Male 77.0 49.9
Female 76.0 47.5
5.2.2 Employee Career Development
Employees form an important engine for the sustainable development of the
Company, so Air China has long been committed to working together with its
employees for common development. We have established a graded and classified
talent management system to build talent team. We have improved the whole
chain management mechanism of "selection, cultivation, management and
employment", and formed a good situation for talents to be attracted, retained
and employed. In 2023, we advanced in the establishment of a professional
qualification level system for professional talents. In accordance with the
Notice on Establishing CNAHC's Professional Qualification Level System for
Professional and Technical Talents, we have clarified and optimized Air
China's qualification evaluation dimensions for professional talents, in a bid
to achieve unified and standardized management. On this basis, we carried out
the work on the establishment of a professional level system in flight crew
dispatching, clarifying the standards to facilitate employee promotion and
reasonable employee mobility.
The jobs of internal transfer or job recruitment for 112 people
The rate of assessments that employees regularly received 100%
Air China's Professional Qualification Level Standards for Professional and
Technical Talents
Junior technician
Intermediate technician
Senior technician
Veteran technician
Technologist
Chief Technologist
5.3 Occupational Health and Safety
Air China always regards the health and safety of its employees as its top
priority. We adhere to the highest standards of occupational health and safety
management, promise to respect the right of employees to enjoy healthy and
safe working conditions, and actively build the occupational health and safety
system, making every effort to protect employees from occupational health and
safety hazards.
5.3.1 Engaging in Occupational Disease Prevention and Control
Air China conscientiously implements laws, regulations, and work requirements
such as the Law of the People's Republic of China on the Prevention and
Control of Occupational Diseases, the Provisions on the Administration of
Occupational Health at Workplaces, and the Notice of the General Office of the
National Health Commission of the People's Republic of China on Further
Strengthening Occupational Health Training for Employers to continuously
strengthen the prevention and control of occupational health hazards and
comprehensively guarantee the life and health of employees. In 2023, based on
the previous "1+N+n" management system, the Company formulated and issued the
Management Measures for Occupational Health Archives of CNAHC and Air China
Limited and the Management Measures for Occupational Health Education and
Training of CNAHC and Air China Limited, further consolidating the management
foundation for prevention and control of occupational diseases.
In terms of occupational health and safety risk assessment, Air China carried
out detection and assessment for hazard factors of occupational diseases by
position, identified safety hazard factors for different positions including
noise and chemical substances, and developed corresponding control measures
and improvement plans for each position.
Air China has formulated and issued the Notice on Issues Related to
Standardizing the Workflow of Handling Work-related Injury Insurance Business
in accordance with policies such as the Regulations on Work-Related Injury
Insurance, to protect the rights and interests of employees. In 2023, the
Company lost a total of 11,105 working days due to work-related injuries.
5.3.2 Caring for Employees' Health
To ensure the occupational health of employees, Air China has formulated the
Employee Physical Examination Management System, and regularly conducts
classified physical examinations for employees of different professions every
year in accordance with the requirements of the system, including general
physical examinations for aircrews and ground staff, differential physical
examinations for aircrews, and special physical examinations for female
employees. The physical examinations cover targeted items to help all
employees understand and confirm their physical health status. We establish
employee occupational health monitoring records, truthfully inform employees
of the physical examination results in written form, and organize a team of
doctors and experts to provide one-on-one consultation services after the
examination, providing practical and feasible health guidance and reasonable
suggestions, to help employees effectively improve their health.
During the reporting period, the coverage rate of occupational health
examinations for employees was 100%.
Air China attaches great importance to the mental health of its employees and
continues to carry out psychological assistance programs to help them relieve
psychological stress and maintain physical and mental harmony. We have opened
a Employee Assistance Program (EAP) hotline for providing psychological
assistance to employees, providing one-on-one and group mental health
counseling, and inviting external experts to give training courses and special
lectures on emotional and stress management, such as "Scientific Understanding
of Emotions and Learning to Release Stress" and "Enneagram and Workplace
Psychological Relief".
Case: Air China Trade Union Conducted Psychological Training for Front-line
Managers
Since the launch of the EAP in 2012, Air China has always regarded employee
psychological care and happy growth as one of its core tasks. In a bid to
continuously deepen EAP services, improve the mental health management and
service capabilities of front-line managers, maintain the stability of the
employee team, and facilitate the Company's high-quality development, the
Trade Union Office held an EAP psychological training covering 100 front-line
managers from September to November, which achieved positive results.
As of the end of December 2023,
A total of 491 sessions of group counseling on mental health, special group
counseling for new employees, special lectures on mental health and the EAP
promotion activities were held
One-on-one psychological counseling cases were 1,558 pieces;
Monthly on-site consultations were held 66 times;
Dealt with crisis cases for 27 hours
Tracked and assisted employees at risk for 46 hours
5.3.3 Promoting Health Awareness
Seizing the opportunity of the promotion week of the Code of Occupational
Diseases Prevention, Air China carried out education and promotion activities
on occupational health and safety to strengthen employees' safety bottom line
thinking and red line awareness, and create a strong atmosphere of all staff
caring for and paying attention to occupational health. In addition, in
collaboration with medical experts, we provided a series of lectures on
employee health management, effectively driving all employees to practice the
concept of healthy work and healthy life.
Case: Live Class on Influenza Prevention for Employees
Considering the high incidence of various infectious diseases in spring, Air
China, in collaboration with Peking University Third Hospital, provided three
live courses given by experts on that topic. On January 12, 2023, we launched
"Health Care After Influenza"; on March 30, we launched "Prevention and
Treatment of Common Infectious Diseases in Spring", and on May 25, we launched
"Lung Health Management". After the courses, we continued to post health notes
and promotional materials of the same topic to employees on the platforms such
as Wings of Air China, and Healthy Air China. We have effectively improved
employees' physical and mental health management by health education through a
combination of multiple channels.
5.4 Incentives and Care
Air China provides competitive salary and comprehensive benefits for all
employees. We have established a diverse and rich employee salary, performance
and welfare system, providing effective welfare guarantees for all employees
of Air China.
5.4.1 Salary and Performance
Air China follows the concept of "paying for post value, personal ability, and
performance results", building a differentiated salary and performance
distribution system that matches individual abilities, is linked to business
performance, and takes into account market competition. This year, Air China
formulated and issued the Notice on Deepening the Reform of Market-oriented
Assessment and Incentive Mechanisms, clarifying the difference in floating
remuneration among employees at the same level in different enterprises and
units, strengthening differentiated assessment and distribution efforts, and
promoting salary distribution favoring outstanding backbone employees and core
talents. We improve the medium and long-term incentive mechanism based on the
actual situation of the Company and actively discuss and promote equity
incentive initiative, in a bid to motivate employees to seek common
development with the Company. In addition, Air China further linked the salary
and performance of employees, enterprise and unit leaders with such indicators
as energy conservation and environmental protection, passenger satisfaction,
serious service incidents and complaints, and internal customer satisfaction,
to motivate managers and employees to improve their ESG management and
practice.
5.4.2 Employee Welfare and Care
Air China values the work-life balance for its employees. It establishes and
improves employee service and welfare systems, and organizes diversified
employee assistance activities, as well as cultural and sports activities, in
a bid to meet employees' diverse needs, enhance employees' sense of belonging
and cohesion, and create a harmonious, warm, and happy workplace.
In terms of statutory benefits, Air China fully fund all employees' five
social insurances and one housing fund on time. Our employees are also
entitled to supplementary benefits including pension plan, supplementary
commercial insurance, and enterprise annuity. This year, the Company's social
insurance coverage rate for employees is 100%. We strictly implement the
requirements from the Labor Law of the People's Republic of China and relevant
national regulations on annual leave for employees, formulate and implement
the Company's attendance management system, and protect the right of
employees. The leaves that the employees are entitled including statutory
paid annual leave, sick leave, wedding leave, maternity leave, parental leave,
and family visit leave.
Providing RMB46.78 million for hot summer and cold winter employee care
Providing RMB506,000 for employees in need
Providing RMB17,000 for four long-term volunteer teachers, four poverty
alleviation cadres, and three cadres serving temporary positions
Providing a mutual aid fund of RMB2.48 million to 124 employees with
illnesses
Case: Care for Female Employees
We actively built the Loving Mother House, and built 9 new Loving Mother
Houses throughout the year; Meanwhile, we continued to improve the environment
and facilities of existing Loving Mother Houses.
We continued to carry out mutual aid fund activities for female employees
with serious illnesses. In 2023, we provided RMB1.64 million to 82 sick female
employees.
We continued to advance the publicity activities on the protection of the
rights and interests of female employees.
On International Women's Day, A Professor from China University of
Political Science and Law Gave a Live Lecture on the Law of the People's
Republic of China on the Protection of Women's Rights and Interests
Case: Rest and Recuperation Program for Excellent Employees
From March to April 2023, Air China organized model workers and excellent
employees to rest and recuperate in Zhaoping County, one of the areas
supported by CNAHC. We arranged a variety of rest and recuperation activities,
including visiting the projects supported by CNAHC, experiencing unique
culture and local specialties, and exchanging ideas with the awardees of
National May 1 Labor Medal, so that they can fully experience the beauty of
the scenery and profound culture of Zhaoping County. Meanwhile, the health
regimen institutions that cooperate with Air China provide professional and
personalized wellness plans for model workers and excellent employees, helping
them alleviate work pressure and enhance their physical fitness.
Case: Sending New Year greetings to frontline employees
Following years of tradition, during the Spring Festival in 2023, Ma
Chongxian, the Chairman of Air China, and the delegation visited frontline
employees to express gratitude for their dedication to their work during the
holiday season and sent holiday greetings and sincere wishes to everyone.
Meanwhile, various units also showed care and concern for frontline employees
in various forms to motivate the employees to work with enthusiasm during the
Spring Festival, ensuring a safe and happy travel of passengers.
Case: Hot summer employee care activity
In July 2023, Air China launched the heat-relieving care activity. Wang
Mingyuan, the Vice Chairman and President with the delegation visited the
frontline workers to see into their work needs and presented heatstroke
prevention supplies such as fruits and drinks, conveying greetings and care to
the frontline workers who still at work in hot weather.
Case: The 5th "Championship" employee basketball game
In September 2023, CNAHC held the 5th Employee Basketball Game. Players of Air
China actively prepared for the competition, which was held in a warm and
friendly atmosphere. The competition was very exciting, with many employees
around cheering for the players. The players carried forward the sports spirit
of "Unity, Endeavor, and Progress Ahead", showcasing the good spiritual
demeanor of Air China's staff.
Case: The 6th Staff Fitness Tour
On October 23, 2023, Air China held its 6th Staff Fitness Tour, with over
1,000 participants. By advocating the concept of "happy work, healthy life"
and offering various forms of sports and fitness activities that employees are
fond of, we bring employees from the computer and their workplaces to the
sports field and nature, enabling them to experience the joy of fitness during
the activities.
Case: Employee Service Construction
In 2023, Air China speeded up the construction of "intelligent logistics",
relying on platforms such as Air China Wings 3.0 to explore the electronic
process for employee service models, and complete the construction of
information-based services including employee catering services. In addition,
we actively conducted surveys on employee satisfaction with the employee
service departments, and based on the satisfaction survey results, we improved
and adjusted service content and methods promptly to strengthen employee
service closed-loop management and further improve employees' experience.
Employee service satisfaction in 2023 was 95.78 points, with a year-on-year
increase of 0.91 points.
5.4.3 Honors and Awards
The Ground Service Department was awarded the National May 1 Labor Award;
Luo Lei from the Flight Crew Department was awarded the National May 1 Labor
Medal.
Chen Youzhi from the Operations Control Center was awarded the Capital
Labor Medal; The Second Squadron of AMECO North China Line Center Regular
Inspection Brigade was awarded the title of Beijing Worker Pioneer.
On September 27th, the commendation conference for Excellent Technology
Leaders, Excellent Innovation Teams, Excellent Young Technology Talents and
Technical Experts in state-owned enterprises and the mobilization and
deployment meeting for the "Hundred-Ten Thousand-One Million" technology
talent training project were held in Beijing. Peng Liansuo from the Operations
Control Center of Air China won the award of "First State-owned Enterprise
Technical Expert".
In the first China Civil Aviation International Talent Skills Competition,
Dai Pingping from the Planning and Development Department of Air China won the
second prize in personal comprehensive awards, and was also awarded the titles
of "National Civil Aviation Gold Medal Employee" and "National Civil Aviation
Young Skilled Expert".
The 18th CNAHC (Civil Aviation Air Marshal, Flight Security Guard)
Vocational Skills Competition was held, and Wu Xiaoyong, Zhang Shuai, and
Zhang Zhenyuan from the Air Marshal Department of Air China were awarded the
honorary title of "National Civil Aviation Technical Expert".
Zhang Weichen, Li Zhenghua, and Zhang Lei from the Information Management
Department of Air China won the "Individual Excellence Award" in the second
China Civil Aviation Network Security Vocational Skills Competition.
We coordinated with the shooting of a documentary by CCTV's "Building
Dreams with Craftsmanship" about the National Model Worker - AMECO Senior
Engineer Ni Zejun. The documentary was broadcast by CCTV's "First Time" column
on January 23, demonstrating the spirit of the engineer who strives for
perfection.
Selected and commended 50 company-level model workers, 120 advanced
individuals, and 80 advanced groups in 2023.
6. Community Responsibility
SDG 1: NO POVERTY
SDG 3: GOOD HEALTH ANG WELL-BEING
SDG 11: SUSTAINABLE CITIES AND COMMUNITIES
Air China has always adhered to the people-centered development ideology,
actively fulfilled its social responsibilities, given full play to its
strengths, and integrated all kinds of resources to contribute Air China's
power to create a better society.
6.1 Rural Revitalization
Air China, guided by Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era and General Secretary Xi Jinping's important
view on the work of agriculture, countryside, and farmers, has deeply
implemented the spirit of the 20th National Congress of the Communist Party of
China, resolutely taken on the political responsibility of paired-up
assistance, and made every effort to support the paired-up assistance areas.
The Company consolidates and expands the achievements of poverty alleviation,
and implements various tasks of rural revitalization with high quality.
During the year,
Air china invested a total of RMB 42.17 million;
The number of invested assistance projects was 20;
A total of RMB 53.73 million was spent on the purchase of products from the
paired-up assistance areas;
Helping the paired-up assistance areas sell agricultural products, totaling
RMB 49.33 million;
A total of 16 young employees from Air China and Shenzhen Airlines were
selected for long-term volunteer teaching in Zhaoping County;
Carried out short-term volunteer teaching in Sonid Right Banner for 5
batches, 48 person-times.
Completing 3,382 class hours of volunteer teaching throughout the year;
Trained 2,294 community-level cadres, 339 rural revitalization leaders, and
1,764 technicians.
Air China gradually establishes an "Aviation+" assistance model that meets the
requirements of the central government and local needs, and also gives full
play of the state-owned civil aviation enterprise. Following the victory in
poverty alleviation, Air China has continued to focus on the revitalization of
"industry, talent, ecology, culture, and organization" by formulating a "5+N"
key project plan for rural revitalization. The assistance work was integrated
throughout the industry chain by further expanding in-flight meals procurement
and research, promoting mileage points exchanged for paired-up assistance
products, and increasing publicity and promotion through aviation media and
various expos.
6.1.1 Consolidating the Achievements of Poverty Alleviation
Air China has constructed a girls' dormitory for Zhaoping County No. 4 Middle
School and built a gymnasium and sports field for Sonid Right Banner No. 2
Primary School, as well as purchased books for the primary and secondary
schools and kindergartens in Sonid Right Banner.
Air China has established the Air China Blue Sky Medical and Health Fund to
assist families in need, donated epidemic prevention materials to paired-up
assistance areas, and effectively helped improve the capacity for emergency
response in epidemic prevention and public health services in these areas,
thereby further consolidating the achievements of poverty alleviation.
Air China invested to paired-up assistance areas for RMB 16.60 million in
basic education throughout the year;
Invested in terms of medical security RMB 2.67 million;
Donated RMB 1.87 million epidemic prevention supplies.
6.1.2 Comprehensively Promoting Rural Revitalization
6.1.2.1 Industrial Revitalization
Industrial development is crucial to rural revitalization. Air China fully
leverages its advantages and actively helps the paired-up assistance areas
achieve common prosperity through various methods such as industrial
assistance and digital empowerment. In the realm of building an e-commerce
sales platform for agriculture and livestock products, Air China has assisted
Sonid Right Banner in breaking through the limitations of traditional sales
models. By utilizing internet technology and e-commerce platforms, Air China
has directly promoted the quality agricultural and livestock products of Sonid
Right Banner to the market, improving sales efficiency and the income of local
herders. In the realm of constructing a digital tea research center, Air China
focuses on leveraging the advantages of data and application scenarios,
promoting the deep integration of digital technology and the real economy. We
have injected new momentum into the transition and upgrading of the
traditional tea industry in Zhaoping County, fostering new industries, new
business formats, and new models. Not only has this improved the quality and
benefits of Zhaoping County's tea products, but it has also brought more
employment opportunities and income sources to local tea farmers.
Air China invested RMB 15.30 million in industrial assistance funds.
Case: Construction of a photovoltaic power station
Air China actively responds to the national call for green development and
utilizes the abundant solar energy resources in Sonid Right Banner to
construct photovoltaic power generation projects. This not only helps to
reduce local consumption of fossil fuels and environmental pollution but also
provides the local people with sustainable clean energy, effectively promoting
the harmonious development of the economy, society, and environment.
Air China organizes and guides employees and Phoenix Miles members to actively
participate in the consumption-driven assistance, understand the needs of
paired-up assistance areas and help them sell products. In recent years, the
Company has purchased agricultural products totaling RMB 340 million from the
paired-up assistance areas.
Case: Consumption-driven assistance for farmers
Air China actively participates in the "Consumption-driven Assistance of
Central SOEs for the Spring Festival" and the "Second Session of the Week for
Consumption-driven Assistance of Central SOEs for Agriculture Promotion"
activities, organizing employees to engage in consumption-driven assistance.
To further promote consumption-driven assistance, Air China continuously
explores and integrates various resource channels. The Company helps to boost
the sales of agricultural products from the paired-up assistance areas by
introducing the agricultural products into staff canteens, first and business
class lounges, Air China Phoenix Miles Member Mall, and organizing youth
volunteers to sell goods through livestreaming at tea gardens.
6.1.2.2 Talent Revitalization
Air China adheres to the philosophy of "Support of Ambition and Intelligence"
and has dedicated to the "CNAHC Blue Sky Classroom" volunteer assistance
project for 6 consecutive years. We have established and improved the
selection and training mechanism of teaching volunteers, and perfected the
systematic construction of volunteer teaching in terms of both theory and
practice.
In 2023, a total of 16 teaching volunteers from Air China and Shenzhen
Airlines taught a total of 3,303 class hours in Zhaoping County. Additionally,
Air China dispatched a total of 48 persons in five batches to carry out
short-term volunteer teaching, with 79 teaching hours completed in Sonid Right
Banner. With the professional instruction and patient guidance of the teaching
staff, the students' grades improved significantly compared with last year.
Case: Rural teaching enhancement project
To further enhance basic education in paired-up assistance areas, Air China
has partnered with organizations such as the China Foundation for Rural
Development, the Ministry of Education, and Beijing Normal University to
provide a teaching enhancement project for teachers in Sonid Right Banner and
Zhaoping County. Additionally, comprehensive training programs have been
conducted for grassroots managers, rural revitalization leaders, and technical
personnel. The Company has invested a total of RMB 4.7 million in training
funds throughout the year, cultivating a group of talents for the paired-up
assistance areas. While improving the quality of local talents, this
initiative also fosters and stimulates endogenous development motivation of
the local people who have been out of poverty, laying a solid talent
foundation for the sustainable development of the region.
6.1.2.3 Cultural Revitalization
Air China actively carries out a culture co-construction project with
Ulanmuchi of Sonid Right Banner, firmly supports Ulanmuchi's literary and
artistic creations that are people-centered and focused on building a strong
sense of the Chinese nation's unity, and keeping in mind General Secretary Xi
Jinping's reply that "Always be a 'red literary light cavalry' on the
grassland".
Case: "Never forget our original aspiration, follow the Party's leadership,
and meet in the grassland for revitalization" themed activity
To further promote the spirit of Ulanmuchi, Air China launched the "Never
forget our original aspiration, follow the Party's leadership, and meet in the
grassland for revitalization" themed activity. During the activity, Air China
joined hands with Zhaoping County to visit Sonid Right Banner, to learn the
struggling history of Ulanmuchi and co-write the story of the joint efforts
with the local people in completing poverty alleviation and continuous rural
revitalization. The activity also specially invited the "Phoenix Voice"
children's choir from Jiangkou Village, Zhaoping County, and the little
Ulanmuchi team from Sonid Right Banner for a "making friends by songs"
communication activity. Through this activity, Air China not only sowed the
seeds of strengthening the consciousness of the Chinese national community
among the children but also effectively promoted cultural exchange and
integration between different regions and ethnic groups, enhancing
understanding and unity among all ethnicities.
6.1.2.4 Ecological Revitalization
A thriving ecosystem is the treasure and strength of rural revitalization,
serving as a vital underpinning for the sustainable and robust growth of the
rural economy. Air China keenly understands the profound significance of
safeguarding the ecological environment and creating livable and beautiful
villages in the revitalization of rural areas.
Case: Jiangkou Village infrastructure construction project
Air China actively joined hands with personnel from Zhaoping County and Sonid
Right Banner to visit Qingyuan County in Zhejiang Province, which was paired
for assistance with the Air China Zhejiang Branch to learn the Zhejiang
Province's experience in launching the project "Green Rural Revival Program" -
relying on the three key approaches of "improving livable rural environments,
promoting high-quality rural construction, and protecting and utilizing
historical and cultural villages", Qingyuan County Party Committee and
Government successfully created an ecologically livable environment. After
this on-site learning, Air China carried out the second phase of renovations
for Zhaoping County Stadium and initiated the infrastructure restoration
project in Jiangkou Village, integrating ecological concepts into the
assistance work to help create beautiful, ecologically livable rural areas.
Ÿ Invested over RMB 2 million in the second phase of renovations for
Zhaoping County Stadium and the infrastructure restoration project in Jiangkou
Village
6.1.2.5 Organization Revitalization
Air China put the "red gene" of flag carriers into a resolute driving force
for comprehensively promoting rural revitalization. With a high sense of
political responsibility, we have stepped up our assistance efforts and
further strengthened the Party's leadership in rural revitalization work. In
2023, Air China continued to select and assign three outstanding cadres to the
paired-up assistance areas, serving as the Deputy Banner Head of Sonid Right
Banner, the Deputy County Mayor of Zhaoping County, and the First Secretary of
Jiangkou Village in Zhaoping County, respectively. Additionally, four
outstanding league members had been dispatched to participate in the work of
the paired-up assistance areas.
Case: "Inheriting the Red Gene and Pursuing Dreams Together" joint activity
The Party Branch of Air China's Golden Phoenix Group visited Sonid Right
Banner, Inner Mongolia, and carried out a communication activity themed
"Inheriting the Red Gene and Pursuing Dreams Together" with the Party Branch
of Ulanmuchi. They seriously studied Xi Jinping Thought on Socialism with
Chinese Characteristics for a New Era, profoundly comprehended the truth power
and practical greatness of the Party's innovative theory, reviewed the oath of
Party membership, and further strengthened their beliefs and original
aspirations.
6.2 Neighbourhood Assistance
The branch of Air China carried out a series of targeted neighbourhood
assistance work closely based on the local situation.
Case: The Southwest Branch of Air China has helped Longba Village cultivate
"golden" potatoes
In Longba Village, Songduo Township, Batang County, Ganzi Prefecture, Sichuan
Province, the village assistance team from the Southwest Branch of Air China
has actively leveraged its advantages to vigorously promote the development of
characteristic agriculture by combining local resource endowments with market
demands. The team, through providing technical guidance and financial support,
developing the market, and other forms of assistance, has helped local potato
farmers increase their production efficiency and expand their income sources.
Case: The assistance team of the Zhejiang Branch visited the residents who had
been out of poverty
In Huangyu Village, Xianliang Town, Qingyuan County, Zhejiang Province, the
assistance team of Air China Zhejiang Branch actively communicated and
collaborated with the local government and residents. To better understand the
needs and difficulties of the villagers, the assistance team visited the
residents who had been out of poverty, and get to know their living
conditions, production situations, and challenges they faced. This initiative
effectively strengthened the connection and interaction between the team and
the residents, creating a positive social atmosphere.
6.3 Supporting the Community
Air China fully leverages its advantages and goes all out to ensure the smooth
completion of major transport tasks. In addition, the Company pays attention
to the needs and welfare of community residents, actively carries out public
welfare undertakings, provides care and assistance to community residents, and
injects energy and warmth into social development.
6.3.1 Major Transport Tasks
With our rich experience in providing air transport service, Air China has
demonstrated our responsibility by undertaking major air transport missions.
Case: Escorting the Chinese Rescue Team to the earthquake-stricken area in
Türkiye
On February 7th, Air China escorted the Chinese Rescue Team on a chartered
flight to the earthquake-stricken area in Türkiye for rescue. On February
17th, Air China flew to Adana Airport in Türkiye again to bring home 82
members of the Chinese Rescue Team and 59 members of the Rescue Team from the
Hong Kong Special Administrative Region of China, fully demonstrating its
efficient response capability in emergencies and its responsibility as a flag
carrier.
Case: Providing flight support for the Summer World University Games
From July 28th to August 8th, the Summer World University Games was held in
Chengdu, Sichuan Province, China. Air China thoroughly implemented the overall
deployment of the Civil Aviation Administration of China and CNAHC regarding
the transport support for the Summer World University Games, focusing on the
goal of "safety, quality service, and smooth operation". We delivered
high-standard and high-quality flight transport services, contributing to the
successful hosting of the Games. During the event, Air China provided a total
of 793 flights for the Summer World University Games at Chengdu's two
airports and transported 7,319 passengers.
Case: Providing flight support for the 19(th) Asian Games Hangzhou and the
4(th) Asian Para Games
Air China thoroughly implemented General Secretary Xi Jinping's instructions
on hosting the 19th Asian Games Hangzhou, strictly adhering to the overall
plan of the Civil Aviation Administration of China for transport security
during the event. With a focus on comfortable arrivals and departures, we
adhered to safety first, made meticulous arrangements and careful
organization, and carried out high-standard and high-quality security work for
the flights involved in the Hangzhou Asian Games and Asian Para Games. During
the period of the Games, Air China safeguarded 1,597 flights and 14,543
passengers related to the Asian Games and the Asian Para Games.
Case: Providing flight support for the China International Import Expo (CIIE)
2023
In November, with meticulous planning and careful organization, the Air China
Shanghai Branch successfully completed the flight support mission for the CIIE
2023 by providing the "high-standard, high-quality, and high-level" services,
and demonstrated its professional capabilities.
Case: Providing support for the World Economic Forum
From June 25th to July 1st, Air China Tianjin Branch successfully completed
the aviation transportation service for the World Economic Forum, providing
high-quality aviation services to passengers.
6.3.2 Bringing Warmth to Communities
Air China is dedicated to fostering positive vibes within communities and
extending warmth and compassion to a wider audience. By engaging in diverse
activities such as community enhancement, supporting charitable causes, and
offering volunteer assistance, we actively contribute to the advancement and
prosperity of society.
Case: Boosting the "silver economy" in rural areas
The Lijiang Business Department of Air China cooperated with Lijiang City to
launch a series of cultural exchange public welfare activities themed
"Fulfilling Dreams in Beijing". From March 20th to 22nd, 100 silver-haired
passengers took Air China flights to Beijing. Considering that all the
silver-aired passengers were first-time flyers, the Business Department
carefully formulated a special security plan. It coordinated exclusive
check-in counters at the airport, guided the elderly through check-in and
security checks, patiently instructed them on the use of airport facilities,
and provided meticulous and thoughtful services to the elderly passengers.
Case: Providing congenital heart disease screening and free medical services
for children in paired-up assistance areas
On June 8th, the assistance team in Longba Village, Songduo Township, Batang
County, Sichuan Province, from the Southwest Branch of Air China, coordinated
with the Sichuan Youth Development Foundation and the West China Second
University Hospital of Sichuan University to visit the Songduo Township
Central School and provide free medical services such as congenital heart
disease screenings for 166 children. Accompanied by the members of the
assistance team, the children who suffered from congenital heart disease
identified through the screenings successfully underwent surgical treatment in
Chengdu on June 13th.
Case: Ensuring Tibetan students' travel
On July 1st, the Chongqing Branch of Air China successfully completed the
flight support for a group of 112 Tibetan students flying from Chongqing to
Bangda. To ensure a nice journey for the students, Air China set up dedicated
check-in counters and assigned special personnel to handle their affairs. The
day of the trip coincided with the birthday of the Communist Party of China,
on which the Chongqing Branch organized a unique interactive activity for the
young passenger by conducting interactive question-and-answer sessions on
basic knowledge of Party history and presenting the students with exquisite
Air China souvenirs.
Case: Ensuring that medical volunteers arrive at Tibet smoothly
On the morning of July 7th, four Airbus A319 planes of Air China safely
arrived at the Qamdo Bangda Airport in Tibet, escorting over 500 medical
volunteers to participate in the large-scale medical public welfare activity,
assisting the medical volunteers in providing health public services locally
and delivering medical assistance and health security to residents.
6.3.3 The Belt and Road Initiative and Overseas Development
In response to the national "Belt and Road" initiative, Air China has actively
accelerated the construction of air corridors connecting countries along the
"Belt and Road" while actively participating in aid and assistance projects in
those countries, contributing to the mutual understanding among the people
along the "Belt and Road". Air China has demonstrated its responsibility as a
state-owned enterprise in promoting shared prosperity and reaching out to each
other in adversity.
By proactively planning the layout of international airlines, actively seeking
policy support, promptly increasing flight frequencies and resuming flights,
Air China fully utilizes both international and domestic markets and resources
to build a global aviation network, promotes regional connectivity, and
actively supports the country's high-level "Going Global Strategy".
By the end of 2023, Air China had executed a total of 55 airlines related
to the "Belt and Road" initiative, covering 25 countries and 31 cities. The
number of flights on these airlines nearly reached 90% of the same period in
2019.
Air China has six new "Belt and Road" airlines, including Beijing-Istanbul,
Hangzhou-Dubai, Chengdu-Manila, Chengdu-Kuala Lumpur, Chongqing-Singapore, and
Beijing-Xi'an-Astana.
Air China has collaborated with the People's Government of Xi'an
Municipality to hold a successful inaugural ceremony for the Xi'an-Astana
airline under the theme of "Building a Bridge of Cooperation and Painting a
Picture of Development", garnering significant publicity and positive
feedback.
Taking advantage of the expansion of Urumqi Diwopu International Airport,
Air China has boosted its local resource investments and strengthened its
collaboration with local governments, regulatory bodies, and airport group to
jointly establish Urumqi as a premier international aviation hub.
Case: Air China staff under the "Belt and Road" Initiative
Mr. Gift Moeketsi, a terminal employee of the Johannesburg Business
Department said, "I believe the 'Belt and Road' initiative will bring a bright
future for South Africa".
Ms. Siuman, Sales Manager of the Jakarta Business Department said, "We go
forward together as a family".
Mr. Faisal, Sales Manager of the Karachi Business Department said, "We face
challenges without fear".
Mr. Tang Jinquan, a terminal employee of the Ho Chi Minh Business
Department said, "I treat every flight as if it is the first".
Ms. Lu Yanping, Passenger Transport Marketing Supervisor of the Kuala
Lumpur Business Department said, "We contribute to the high-quality
construction of the 'Belt and Road' initiative"
Ms. Anna, a terminal server of the Minsk Business Department said, "We
build a bridge of friendship".
6.4 Jointly Promoting Industry Development
Participating in national/industry key programs
During the "Fourteenth Five-Year Plan" period, Air China has undertaken the
important mission of a large hub network civil aviation transportation
enterprise in order to implement a modern comprehensive transportation system
and civil aviation development plan. We gave full play to our advantages,
further strengthened in-depth cooperation with other modes of transportation,
promoted the smoothing of all links in the entire chain of passenger travel,
and drove the integrated development of a comprehensive three-dimensional
transportation network and transportation integration to meet people's desire
for better transportation. As of December 31(st), Air China formed an
air-to-ground integrated transportation service product system mainly based on
"joint air-rail transportation", supplemented by other ground transportation
products such as join air-bus transportation, covering 63 domestic transfer
cities, 98 transfer railway stations, and 371 accessible railway stations,
effectively connecting 582 railway lines.
Adhering to the principle of facilitating convenient travel for passengers,
Air China has created a range of viable and reputable express airline products
and brands. In December 2023, the express service was comprehensively
upgraded, with the seventh express airline from Beijing to Xiamen added.
Additionally, on the Beijing to Shenzhen and Beijing to Xiamen airlines, Air
China strengthened coordination with Shenzhen Airlines, as well as Shandong
Airlines, launching a new product that passengers could immediately rebook for
Air China flights within the isolation area, enhancing the airline's
differentiated competitive advantage and improving the profitability and value
contribution of core airlines.
Air China innovates travel services for the elderly. In line with the
requirements of the Ministry of Industry and Information Technology's special
action for the inspection of internet application adaptation for the elderly
and barrier-free transformation, Air China launched a "Caring Version"
website, which allowed the Company's domestic website and mobile applications
to support features such as voice reading and large subtitles, catering to the
needs of the elderly and ensuring barrier-free access, passed the relevant
assessments by the Ministry of Industry and Information Technology and had
been awarded the "Age-Friendly and Barrier-Free Service" certification mark.
Providing support for charter flights and the "Belt and Road" Summit. As an
important direct sales platform for Air China, the Air China app undertook the
task of selling tickets for significant charter flights and guests attending
the "Belt and Road" Summit. During this period, Air China coordinated with
various ministries, embassies abroad, and its own departments, considered
objective issues such as overseas time differences, and formulated a
comprehensive system upgrade plan quickly to resolve issues related to
exclusive pricing and international bank card payments. We also launched a
series of flight sales functions including flight dispatch, sales, and
registration for summit participants, establishing an aerial bridge for
"bringing compatriots home" and supporting the "Belt and Road" initiative.
Industry construction
Partnering with alliance members to successfully overcome the challenges of
alliance audits and sorting the alliance standards based on the new core value
of the alliance, with a 100% compliance rate in alliance audits.
Expanding the application of alliance digitalization and launching multiple
customer service functions to enhance the travel experience of passengers.
Establishing interline cooperation mechanisms with multiple airlines and
deepening interline cooperation to support the recovery of international
airlines.
Actively participating in IATA governance, being elected as a member of
the Ground Operations, IOSA Oversight, and Airport Working Group under the
Operations Advisory Council (OAC), a member of the Simplified Invoicing and
Settlement (SIS) Steering Group under the Industry Finance Advisory Council
(IFAC), and a member of the Plan Standards Board, Travel Standards Board,
Settlement and Accounting Standards Board, and Architecture and Technology
Strategy Board under the Passenger Standards Conference (PSC).
Seizing the opportunity of a market recovery, collaborating with Tourism
Australia, and holding three offline interactive promotional events in
Beijing, Shenyang, and Xi'an, to boost sales for Australian routes.
Participating in the second Civil Aviation Science and Education Innovation
Achievement Exhibition, where our B2C mobile application system platform made
a spectacular debut.
Engaging in in-depth cooperation with Huawei on the HarmonyOS ecosystem and
integrating air travel scenarios with Huawei's HarmonyOS system.
Case: Air China participated in the 15th International Exhibition of Transportation Technology & Equipment
On September 25, 2023, Air China participated in the 15th International
Exhibition of Transportation Technology & Equipment. The Air China booth
featured the theme "Innovation Escorting a Bright Future," highlighting the
Company's latest innovation achievements in operation support, aircraft
maintenance, environmental protection, and passenger travel. It was fully
demonstrated that the Company adhered to new development concepts, served the
national strategy, and promoted high-quality practical exploration through
digitalization.
Case: Air China made a splendid appearance at the China Air Transport Association (CATA) Conference
On November 3, 2023, Air China made a splendid appearance at the CATA
Conference. The professional exhibition attracted more than 200 civil aviation
enterprises, research institutions, universities, and foreign companies.
Through multimedia presentations, flight simulation experiences, and on-site
interactions, Air China comprehensively displayed its development history,
corporate spirit, service products, and innovative practices. In a panoramic
view, the Company's latest achievements in actively fulfilling social
responsibilities, pursuing high-quality development, and striving to be a
world-class aviation transportation enterprise were presented.
Case: Air China became the core supporting enterprise and aviation service
partner of the China International Supply Chain Expo (CISCE)
On November 29, 2023, Air China signed a cooperation agreement with China
International Exhibition Center Group Limited, officially becoming the core
supporting enterprise and aviation service partner of the First CISCE,
actively serving the construction of a new development pattern with practical
actions.
6.5 Volunteer Activities
Air China adheres to the volunteer service concept of "dedication, friendship,
mutual assistance and progress", coordinates public welfare resources and
actively engages in public welfare activities, to strive to be an outstanding
corporate citizen.
Case: The volunteer services
During the peak summer travel season, we launched a volunteer service activity
at the airport terminal to assist with production challenges. Within 24 hours,
256 young volunteers in Beijing gathered to provide services such as check-in
guidance and luggage assistance for over 27,000 travelers, accumulating a
total of 1,400 hours of volunteer service. The dedication and enthusiasm of
the young volunteers not only earned widespread appreciation and praise from
passengers but also showcased the spirit and excellence of our volunteers.
Case: Shandong Airlines organized a volunteer activity in Dagao Town No. 2
Primary School
On May 26, 2023, Shandong Airlines organized a volunteer activity in the No. 2
Primary School of Dagao Town, Zhanhua District, Binzhou City. The "Lingyun"
volunteers from the Air Marshall Department presented the show, combining
"allegro" with "grappling and martial arts fighting", showcasing the "Lingyun"
spirit of "loyalty, responsibility, martial prowess, and dedication" to the
fullest, and eliciting awe and wonder from the children present. Volunteers
from the Operations Risk Control Center turned the performance stage into a
classroom for popularizing civil aviation knowledge, enabling the children to
understand the principles of aircraft takeoff through hands-on experiments and
learn about the development history of aircraft to encourage the children to
work hard to make their dreams come true.
Case: Volunteer service activities for the 19th Asian Games Hangzhou and the
4th Asian Para Games
During the 19th Asian Games Hangzhou and the 4th Asian Para Games, Air China
actively recruited 12 outstanding young volunteers in two batches to provide
assistance at the airport terminal, totaling 1,624 hours of volunteer service.
As the main unit for flight support for the two events, the Zhejiang Branch
organized nearly 100 volunteers to actively participate in flight support,
accumulating over 7,000 hours of volunteer service.
Case: Volunteers from Shenzhen Airlines cared for children with autism
Shenzhen Airlines' volunteers visited Shenzhen Bao'an District Xingguang
School to bring warmth to children with autism. During the activity, the
volunteers interacted closely with the children, watched flight videos,
introduced the boarding process, taught them how to use seat belts and oxygen
masks, and explained flight knowledge engagingly and interestingly. They led
the children on a virtual journey through the skies for the joy of "flying".
Case: The "Heyue" cabin crew's education assistance activity
The "Heyue" Cabin Crew of the Cabin Service Department of Air China Zhejiang
Branch, actively participated in the "Hongxinbao Care Playground" project
organized by the Hangzhou Charity Federation, showing care and concern for the
children of migrant workers in Hongxinbao. They organized "Charitable
Education" public welfare donation activities within the Company, and visited
Hongxinbao numerous times to spend time with the children, engaging in various
fun activities to create a relaxed and joyful atmosphere, bringing them warmth
and care.
Appendix
Outlook for 2024
Looking ahead to 2024, Air China will thoroughly implement the guiding
principles from the Party's 20th National Congress and stay adherent to the
general principle of pursuing progress while ensuring stability. We will fully
and faithfully apply the new development philosophy on all fronts, work to
create a new development layout，continuously promote sustainable
development, and drive the high-quality development of the enterprise.
Adhering unwaveringly to the principle of safety first. We will resolutely
pursue a holistic approach to national security, firmly keep in mind the
concept of ensuring safety in development, continuously improve safety
management, comprehensively strengthen the construction of the management
system, hold the key link of workplace safety, promote the construction of a
long-term mechanism for safety conduct, and resolutely safeguard the safety.
Comprehensively enhancing service quality. We will significantly raise the bar
on service quality across the board. This includes ongoing enhancements to our
service standards, a relentless pursuit of brand excellence in service, and a
consistent drive to strengthen quality control measures. We will also advance
our digital service capabilities and further refine the operational quality of
our hubs, all in a bid to foster the delivery of high-quality services.
Embracing a greener future. We will accelerate the development of our smart
carbon peaking and carbon neutrality platform, expand the routine use of
sustainable aviation fuels, and steadfastly continue our "Enjoying Low-Carbon
Travel" initiative. We are committed to taking concrete steps towards an
environment-friendly, circular, and low-carbon economy.
Resolutely winning the battle for profitability. We will adopt a comprehensive
approach to boost operational efficiency and revenue integrity. By
streamlining our production processes and maximizing aircraft utility, we are
proactively pursuing profit growth. Additionally, we will implement a
sophisticated cost management system to exercise rigorous cost control and
prioritize risk mitigation strategies.
Strengthening the effort to promote reform and innovation. By ramping up our
reform initiatives and prioritizing strategic tasks, we are determined to
ensure the effective implementation of our Group's strategic plans and reform
agendas. Our goal is to continually enhance our value-creation capabilities
and swiftly establish ourselves as a world-class corporation.
Table of Major Indicators *
Indicators 2021 2022 2023
Total assets (RMB million) 298,415 295,011 335,303
Total actual tax paid during this year (RMB million) 3,339 3,223 5,784
Number of registered aircraft (unit) 746 762 905
Average aircraft age (years) 8.23 8.59 9.36
Safe flight hours (1,000 hours) 1,590.2 1,166.9 2,529.5
RTK (million tonnes kilometres) 13,599 9,688 21,887
Passenger carried (million passengers) 69 45 125
Cargo and mail carried (1,000 tonnes) 1,186.7 902.8 1,070.4
Purchase from the five largest suppliers (RMB million) 17,852 24,598 42,684
Passengers' overall satisfaction (points) 84.7 87.5 88.4
Premium passengers' overall satisfaction (points) 85.2 87.6 89.4
Ground service satisfaction (points) 83.2 84.9 87
Ticket service satisfaction (points) 88.3 89.8 90.6
Cabin service satisfaction (points) 83.5 85.7 88.1
International baggage error rate (pieces/1000 person-times) 1.76 1.56 1.78
Domestic baggage error rate (pieces/1000 person times) 0.2 0.2 0.12
Total number of passenger complaint cases from all channels (cases) 15,793 14,787 27,000
Passenger complaint handling rate (%) 100 100 100
Flight on-time performance (%) 88.96 95.45 87.94
Flight execution rate (%) 99.03 99.2 99.2
Total energy consumption (1,000 tonnes standard coal) 7,151 4,631 10,608
Aviation fuel consumption (1,000 tonnes) 4,813 3,102 7,157
Power consumption (MWh) 214,229.6 227,952.3 274,869.5
Gasoline consumption (tonnes) 2,336.6 1,708.8 2,276.8
Diesel consumption (tonnes) 5,565.4 3,945.5 5,830.7
Natural gas consumption (1,000 m³) 15,100 16,105 17,837
Thermal power (MKJ) 311,688.4 251,909.3 239,902.0
Other energy consumption (tonnes standard coal) 0.6 6.4 36.7
Fuel consumption intensity (kg/ton-km) 0.357 0.358 0.336
CO(2) emission intensity (g/tonne-km) 1,124.7 1,126.5 1,058.7
CO(2) emissions (1,000 tonnes) 15,442 10,053 22,791
Total hazardous waste emissions (tonnes) 1,089.1 1,112.4 1,337.8
Water consumption in the offices (1,000 tonnes) 4,905 4,531 5,268
Water consumption intensity in the offices (tonnes/person) 55.5 52.0 51.2
Environmental protection investment (RMB1,000) 467,798 244,159 385,010
Number of employees on the post (persons) 88,395 87,190 102,874
Labor contract signing rate (%) 100 100 100
Proportion of employees guaranteed by collective bargaining agreements (%) 100 100 100
Social insurance coverage (%) 100 100 100
Work-related deaths (persons) 0 1 0
Proportion of employees who died due to work (%) 0 0.001 0
*
1 The financial, operational, and employee data are consistent with those of
the annual report.
2 The service data comes from Air China, Dalian Airlines, Beijing Airlines and
Inner Mongolia Airlines. The Total number of passenger complaint cases from
all channels includes complaints received by the Company and transferred by
the CAAC.
3 Energy consumption data includes greenhouse gas emissions from Air China and
its subsidiaries, including Air China, Shenzhen Airlines, Kunming Airlines,
Shandong Aviation Group Corporation, Dalian Airlines, Inner Mongolia Airlines,
Beijing Airlines, and Ameco. Hazardous waste emissions only involve those from
Ameco.
HKEX ESG Indicator Index
Indicator Details Page No.
Mandatory disclosure indicators
Governance Structure
A disclosure of the board's oversight of ESG issues; P5、P24
The board's ESG management approach and strategy, including the process used P24-30
to evaluate, prioritise and manage material ESG-related issues (including
risks to the issuer's businesses); and
How the board reviews progress made against ESG-related goals and targets with P5、P28-29
an explanation of how they relate to the issuer's businesses.
Reporting Boundary
A narrative explaining the reporting boundaries of the ESG report and P1-2、
describing the process used to identify which entities or operations are
included in the ESG report. If there is a change in the scope, the issuer P28-29
should explain the difference and reason for the change
"Comply or explain" provisions
A. Environmental
Aspect A1: Emissions
General Disclosure P65、P67-70
A1.1 The types of emissions and respective emissions data. P65、P67-70
A1.2 Direct (Scope 1) and energy indirect (Scope 2) greenhouse gas emissions (in P65
tonnes) and, where appropriate, intensity (e.g. per unit of production volume,
per facility).
A1.3 Total hazardous waste produced (in tonnes) and, where appropriate, intensity P68-69
(e.g. per unit of production volume, per facility).
A1.4 Total non-hazardous waste produced (in tonnes) and, where appropriate, P69
intensity (e.g. per unit of production volume, per facility).
A1.5 Description of emissions target(s) set and steps taken to achieve them. P65
A1.6 Description of how hazardous and non-hazardous wastes are handled, and a P68-69
description of reduction target(s) set and steps taken to achieve them.
Aspect A2: Use of Resources
General Disclosure P71-72
A2.1 Direct and/or indirect energy consumption by type (e.g. electricity, gas or P112-113
oil) in total (kWh in '000s) and intensity (e.g. per unit of production
volume, per facility).
A2.2 Water consumption in total and intensity (e.g. per unit of production volume, P71
per facility).
A2.3 Description of energy use efficiency target(s) set and steps taken to achieve P71-72
them.
A2.4 Description of whether there is any issue in sourcing water that is fit for P71
purpose, water efficiency target(s) set and steps taken to achieve them.
A2.5 Total packaging material used for finished products (in tonnes) and, if P72
applicable, with reference to per unit produced.
Aspect A3: The Environment and Natural Resources
General Disclosure P58-59、P67-70
A3.1 Description of the significant impacts of activities on the environment and P58-59、P67-70
natural resources and the actions taken to manage them.
Aspect A4: Climate Change
General Disclosure P59-67
A4.1 Description of the significant climate-related issues which have impacted, and P59-67
those which may impact, the issuer, and the actions taken to manage them.
B.Social
Aspect B1: Employment
General Disclosure P85、93-94
B1.1 Total workforce by gender, employment type (for example, full- or parttime), P86-87
age group and geographical region.
B1.2 Employee turnover rate by gender, age group and geographical region. P87
Aspect B2: Health and Safety
General Disclosure P91
B2.1 Number and rate of work-related fatalities occurred in each of the past three P113
years including the reporting year.
B2.2 Lost days due to work injury. P92
B2.3 Description of occupational health and safety measures adopted, and how they P92-93
are implemented and monitored.
Aspect B3: Development and Training
General Disclosure P88
B3.1 The percentage of employees trained by gender and employee category (e.g. P90
senior management, middle management).
B3.2 The average training hours completed per employee by gender and employee P90
category
Aspect B4: Labor Standards
General Disclosure P85
B4.1 Description of measures to review employment practices to avoid child and P85-86
forced Labor.
B4.2 Description of steps taken to eliminate such practices when discovered. P85-86
Aspect B5: Supply Chain Management
General Disclosure P42-46
B5.1 Number of suppliers by geographical region. P43-44
B5.2 Description of practices relating to engaging suppliers, number of suppliers P42-44
where the practices are being implemented, and how they are implemented and
monitored.
B5.3 Description of practices used to identify environmental and social risks along P42-44
the supply chain, and how they are implemented and monitored.
B5.4 Description of practices used to promote environmentally preferable products P44-46
and service when selecting suppliers, and how they are implemented and
monitored.
Aspect B6: Product Responsibility
General Disclosure P75-84
B6.1 Percentage of total products sold or shipped subject to recalls for safety and Not applicable. Air China's business does not involve production.
health reasons.
B6.2 Number of products and service related complaints received and how they are P77-78
dealt with.
B6.3 Description of practices relating to observing and protecting intellectual P41-42
property rights.
B6.4 Description of quality assurance process and recall procedures. P75-77
B6.5 Description of consumer data protection and privacy policies, and how they are P78-80
implemented and monitored.
Aspect B7: Anti-corruption
General Disclosure
B7.1 Number of concluded legal cases regarding corrupt practices brought against P35-37
the issuer or its employees during the reporting period and the outcomes of
the cases.
B7.2 Description of preventive measures and whistleblowing procedures, and how they P36
are implemented and monitored.
B7.3 Description of anti-corruption training provided to directors and staff. P37
Aspect B8: Community Investment
General Disclosure P97、130
B8.1 Focus areas of contribution (e.g. education, environmental concerns, Labor P97-109
needs, health, culture, sport).
B8.2 Resources contributed (e.g. money or time) to the focus area. P97、108-109
GRI Index
Report Contents GRI Standards Benchmarking
About this Report 2-2、2-3
Chairman's Statement /
Board of Directors ESG Statement 2-14、2-17、2-22
Air China 2-1、2-6
2023 Highlights of ESG Performance /
Honors and Awards /
Sustainable Responsible Governance Governance System 2-9、2-10、2-11、2-12、2-13、2-16、2-17、2-18、2-19、2-20、2-23、2-24、2-27、405-1
Development
Management
Guidance of Party Building /
Social Responsibility Management 2-6、2-22、2-29、3-1、3-2、3-3
Comprehensive Risk Management 2-24、2-25、2-27、205-1
Anti-Corruption and Business Ethics 2-16、2-24、2-25、2-26、2-27、205-2、205-3、206-1
Advancing Technological Innovation /
Digital Transformation /
Intellectual Property Rights Protection /
Responsible Supply Chain Supply Chain Quality Management 2-6、2-24、204-1、308-1、308-2、414-1、414-2
Compliant Management of the Supply Chain 2-9、204-1、308-1、308-2、414-1、414-2
Green Procurement 308-1、308-2、414-1、414-2
Safety Safety Management Safety Governance Structure 403-8、416-1
Development
Emergency Management 403-2
Safety Management Priorities 403-2、416-2
Employee and Passenger Flight Safety 416-1
Safety
Cabin Safety 416-1
In-fight Food Safety 416-1
Ground safety 416-1
Safety Culture Safety Culture Building 3-2、403-5、416-1、416-2
Safety Training 3-2、403-5、416-1
Green Improvement of Environmental Management System /
Operations
Addressing Climate Governance 201-2
Climate Change
Our Strategies 201-2
Risk Management 201-2
Our Goals 305-1、305-2、305-4、305-5、305-6、305-7
Our Actions /
Promoting the Green Operation Model Emissions Management 306-1、306-2、306-3、306-4、306-5
Use of Resources 301-1、301-2、301-3、302-1、302-2、302-3、302-4、302-5、303-1、303-2、303-3、303-4、303-5、306-5
Biodiversity Conservation 304-1、304-2、304-3、304-4
Corporate Green Responsibility /
Quality Service Service Quality Management 3-1、3-2
Safeguarding the Rights and Interests of Passengers Guaranteeing Flight Regularity 416-1
Response to Customer Demands 416-1
Privacy and Data Security 418-1
Responsible Marketing 417-1、417-2
Sincere Service Passenger Service 416-1
Special Passenger Service 416-1
Digital Service 416-1
Employee Employment and Employees' Rights and Interests Equal Employment 2-7、2-8、2-30、401-1、405-1、406-1
Development
Democratic Management 2-30
Employee Training and Development Training System Construction 404-1
Employee Career Development 404-2
Occupational Health and Safety Engaging in Occupational Disease Prevention and Control 403-1、403-2、403-3、403-4、403-6、403-7、403-8、403-9、403-10
Caring for Employees' Health 403-3、403-4、403-6
Promoting Health Awareness 403-5
Incentives and Care Salary and Performance 2-19、2-20、404-3
Employee Welfare and Care 201-3、401-2、401-3
Honors and Awards 203-1
Community Responsibility Rural Revitalization Industrial Revitalization 203-1、203-2、413-1
Talent Revitalization 203-1、203-2、413-1
Cultural Revitalization 203-1、203-2、413-1
Ecological Revitalization 203-1、203-2、413-1
Organization Revitalization 203-1、203-2、413-1
Neighbourhood Assistance 2
0
3
-
1
、
2
0
3
-
2
、
4
1
3
-
1
Supporting the Community Major Transport Tasks 203-1、203-2
Bringing Warmth to Communities 203-1、203-2、413-1
The Belt and Road Initiative and Overseas Development 203-2、413-1
Jointly Promoting Industry Development 2
-
2
8
、
2
-
2
9
、
3
-
2
Volunteer Activities 2
0
3
-
1
Appendix Outlook for 2024 2-22
Table of Major Indicators 2
0
1
-
1
HKEX ESG Indicator Index /
GRI Index /
Major Laws, Regulations and Corporate Policies 2
-
2
3
、
2
-
2
7
Third-Party Assurance 2
-
5
Feedback Collection 2
-
2
9
Major Laws, Regulations and Corporate Policies
ESG Indicator Applicable Laws and Regulations Corporate Policies
A1 Law of the People's Republic of China on the Prevention and Control of Air Waste Disposal Management Procedures
Pollution
Emissions
Special Emergency Response Plan for Hazardous Waste
Law of the People's Republic of China on the Prevention and Control Noise
Pollution Hazardous Waste Disposal Agreement
Law of the People's Republic of China on the Prevention and Control of Water Notice on Promoting Plastic Pollution Control in Offices
Pollution
Environmental Standard of Aircraft Noise around the Airport
Law of the People's Republic of China on the Prevention and Control of
Environment Pollution Caused by Solid Wastes CNAHC Special Actions on Plastic Pollution Control (2021-2025)
Integrated Emission Standard of Air Pollutants
Standard for Pollution Control on the Municipal Solid Waste Incineration
Integrated Emission Standard of Water Pollutants
Regulation on Urban Drainage and Sewage Treatment
Technical Policy on the Prevention and Control of Pollution Caused by
Hazardous Waste
Provisions on the Administration of Urban Construction Garbage
Regulations of the People's Republic of China on the Prevention and Control of
Noise Pollution
A2 Water Law of the People's Republic of China Water Management Regulations
Use of Energy Conservation Law of the People's Republic of China Energy-Saving and Environmental Protection Management Methods
Resources Measures for the Administration of Energy Conservation of Major Energy Conservation and Environmental Protection Training Implementation Rules
Energy-Consuming Entities
Energy Conservation and Environmental Protection Supervision Implementation
Rules
Energy Conservation and Environmental Protection Assessment and Reward and
Punishment Measures
Energy Conservation and Emission Reduction Management Manual
Energy Conservation Diagnosis Work Plans
Energy Conservation and Environmental Protection Responsibility Letters
A3 Environmental Protection Law of the People's Republic of China Environmental Compliance Evaluation Report
Environment Law of the People's Republic of China on Environmental Impact Assessment Air China Emergency Response Plan for Environmental Emergencies
and Natural Law of the People's Republic of China on Water and Soil Conservation Environmental Management Manual
Resources Management and Review Procedures for Environmental Management Systems
Identification, Evaluation, and Update Management Procedures of Environmental
Factor
A4 The 14th Five-Year Special Plan for Green Development Action Plan for Carbon Peaking
Climate The 14 Five-Year Plan Carbon Emissions Management Implementation Rules
Change China's Policies and Actions for Addressing Climate Change (2022)
Working Guidance for Carbon Dioxide Peaking and Carbon Neutrality in Full and
Faithful Implementation of the New Development Philosophy
Notice by the State Council of the Action Plan for Carbon Dioxide Peaking
Before 2030
B1 Labor Law of the People's Republic of China Employee Recruitment Management Regulations
Employment Labor Contract Law of the People's Republic of China Collective Contract
Employment Promotion Law of the People's Republic of China Special Collective Contract for Labor Protection
Collective Contract for the Protection of Female Employees' Special Rights and
Interests
Notice on Deepening the Reform of Market-oriented Assessment and Incentive
Mechanisms
Management Measures for Trade Union Members' Congress of CNAHC
Labor Union Organization Construction Operating Procedures of CNAHC
Rules for the Work of Trade Union Committees and Standing Committees
B2 Work Safety Law of the People's Republic of China Regulations on the Management of Dual Prevention Mechanisms of Graded Control
and Hidden Danger Investigation and Governance of Civil Aviation Safety Risks
Health and Civil Aviation Law of the People's Republic of China
Regulations on Operation Qualification of Large Aircraft Public Air Transport
Safety Interim Provisions on the Supervision and Management of Work Safety at Carriers (CCAR-121)
State-owned Enterprises
Provisions on the Administration of Civil Aviation Safety (CCAR-398)
Regulations on the Management of Dual Prevention Mechanisms of Graded Control
and Hidden Danger Investigation and Governance of Civil Aviation Safety Risks
Implementation Plan for the Construction of Long-term Mechanisms for Safety
Culture among CNAHC's Safety Personnel
Operations Control Center Quality Inspection Workgroup Management Regulations
Emergency Response Manual
ManagementMeasures for Flight Operation Data Analysis (draft for comments)
Company Overall Emergency Plan
Operation Manual
OC Flight Abnormal Situation Handling Procedures
Air China, Shenzhen Airlines, Shandong Airlines Operations Control Department
AOC Construction Communication Sharing Mechanism
Implementation Plan for the Construction of Long-term Mechanisms for Safety
Culture among CNAHC's Safety Personnel
Report on Engineering Control Measures for Major Technical Issues
Ground Services Department Aviation Safety Management Manual
Ground Services Department Aviation Safety Management Procedures Ground
Services Department Safety Practitioner Work Style Long-Term Mechanism
Construction Implementation Plan
Work Program on Safety Publicity, Education and Cultural Style Construction of
CNAHC in 2023
Safe Production - Long-term Mechanisms for the Construction of Safety Culture
and Working Styles
B3 / Notice on Tarmac Operations Training
Development Training Management Manual,
and Training
B4 Labor Law of the People's Republic of China Employee Code of Conduct
Labor Labor Contract Law of the People's Republic of China Punishment Regulations for Labor Discipline Violation.
Standards Employment Promotion Law of the People's Republic of China
B5 Bidding Law of the People's Republic of China Supplier Management Regulations
Supply Chain Regulations on the Implementation of the Bidding Law of the People's Republic Procurement Management Regulations of Air China Limited
of China
Management Procurement Management Platform Operation Management Regulations of China
National Aviation Holding Corporation Limited and Air China Limited
Procurement Business Inspection Management Regulations of China National
Aviation Holding Corporation Limited and Air China Limited
Management Measures for Malpractices of Suppliers
Letter of Supplier Commitment Against Commercial Bribery.
Notice on the Implementation of Green Procurement
B6 Trademark Law of the People's Republic of China Digital Transformation Action Plan (2022-2025)
Product Regulations on the Implementation of the Trademark Law of the People's Legal Affairs Management Regulations of China National Aviation Holding
Republic of China Corporation Limited and Air China Limited
Responsibility
Patent Law of the People's Republic of China Intellectual Property Management Measures of Air China Limited,
Regulations on the Implementation of the Patent Law of the People's Republic General Rules for Service Standard Management
of China
Service Standard Document Management Procedures
Copyright Law of the People's Republic of China
Service Standard Document Compilation Specifications
Madrid Agreement Concerning the International Registration of Marks
Service Quality Management System Usage Management Regulation
Work Safety Law of People's Republic of China
Service Quality Inspection Management Regulations
Civil Aviation Law of People's Republic of China
Service Quality Risk and Hazard Management Regulations
Guidelines for the Construction of Public Air Transport Passenger Service
Quality System Complaint Management Regulations
Personal Information Protection Law of the People's Republic of China Passenger Satisfaction Survey Management Regulations
Cyber Security Law of the People's Republic of China Service Reward and Punishment Management Regulations
Management Regulations for Service Remediation Authorization
Privacy Policy
Data Management Regulations for China National Aviation Holding Corporation
Limited and Air China Limited.
Notice on Annual Data Security Check Training Work
B7 Criminal Law of the People's Republic of China Compliance Management Regulations of Air China Limited
Anti-corruption Company Law of the People's Republic of China Compliance Code of Conduct of Air China Limited
Anti-Money Laundering Law of the People's Republic of China Management Measures for Overseas Compliance of Air China Limited
Anti-Unfair Competition Law of the People's Republic of China Overseas Compliance Training Manual (English and Chinese versions)
Interim Provisions on Prohibition of Commercial Bribery Audit Rectification Tracking Management Measures of China National Aviation
Holding Corporation Limited and Air China Limited
Anti-Monopoly Law of the People's Republic of China
Implementation Rules for the Handling of Letters and Visits of Air China
Bidding Law of the People's Republic of China Limited (for Trial Implementation
Surveillance Law of the People's Republic of China Implementation Measures for Utilizing the First Form
Education and Training Work Plan for Cadres of Discipline Inspection and
Supervision (2021-2023)
Anti-Commercial Bribery Compliance Manual (2022 Edition)
Compilation of Antitrust Case Dynamics in the Aviation Industry
Compliance Manual for Data in Various Jurisdictions (2022 Edition)
Regulations on the Integrity Commitment of Leading Officials of Air China
Limited
Supervision, Inspection, and Assessment Plan
List of Enterprises Prohibited from Transactions (2022)
Implementation Rules for the Handling of Letters and Visits of Air China
Limited (for Trial Implementation)
Integrity Education Work Plan 2023
Reference Catalog of Integrity Education Training Courses
Comprehensive List of On-site Teaching Resources for Integrity Education
B8 / Administrative Measures for External Donations
Community Implementation Opinions on Practicing Targeted
Investment Assistance Work
Articles of Association of Chinese Youth Volunteers Association
Administrative Measures for Volunteer Teaching Program of "CNAHC Blue Sky
Classroom"
"CNAHC Blue Sky Classroom" Volunteer Teaching Plan
(2021-2023)
Third-Party Assurance
SGS-CSTC'S REPORT ON SUSTAINABILITY ACTIVITIES IN THE AIR CHINA LIMITED'S
CORPORATE SOCIAL RESPONSIBILITY (ESG) REPORT FOR 2023
NATURE OF THE ASSURANCE/VERIFICATION
SGS-CSTC STANDARDS TECHNICAL SERVICES CO., LTD. (hereinafter referred to as
SGS) was commissioned by AIR CHINA LIMITED (hereinafter referred to as Air
China) to conduct an independent assurance of the Chinese version of Air
China's Corporate Social Responsibility (ESG) Report for 2023 (hereinafter
referred to as the Report).
INTENDED USERS OF THIS ASSURANCE STATEMENT
This Assurance Statement is provided with the intention of informing all Air
China's Stakeholders.
RESPONSIBILITIES
The information in the Report and its presentation are the responsibility of
the directors and the management of Air China. SGS has not been involved in
the preparation of any of the material included in the Report.
Our responsibility is to express an opinion on the text, data, graphs and
statements within the scope of verification with the intention to inform all
Air China's stakeholders.
ASSURANCE STANDARDS, TYPE AND LEVEL OF ASSURANCE
The SGS ESG & Sustainability Report Assurance protocols used to conduct
assurance are based upon internationally recognised assurance guidance and
standards including the principles of reporting process contained within the
Global Reporting Initiative Sustainability Reporting Standards (GRI Standards)
GRI 1: Foundation 2021 for report quality, GRI 2 General Disclosure 2021 for
organisation's reporting practices and other organizational detail, GRI 3 2021
for organisation's process of determining material topics, its list of
material topics and how to manages each topic, and the guidance on levels of
assurance contained within the AA1000 series of standards and ISAE3000.
The assurance of this report has been conducted according to the following
Assurance Standards:
· SGS ESG & SRA Assurance Protocols (based on GRI Principles
and guidance in AA1000)
Assurance has been conducted at a moderate level of scrutiny.
SCOPE OF ASSURANCE AND REPORTING CRITERIA
The scope of the assurance included evaluation of quality, accuracy and
reliability of specified performance information as detailed below and
evaluation of adherence to the following reporting criteria:
· HKEX Environmental, Social and Governance Reporting Guide
· GRI Standards 2021 (Reference)
ASSURANCE METHODOLOGY
The assurance comprised a combination of pre-assurance research, interviews
with relevant employees on-site at Air China's headquarters located at No. 30,
Tianzhu Road, Tianzhu Airport Industrial Zone, Shunyi District, Beijing, P.R.
China.
LIMITATIONS AND MITIGATION
Financial data drawn directly from independently audited financial accounts
has not been checked back to source as part of this assurance process.
The data related to carbon emissions in the Report was self-accounted by Air
China, and the carbon data audit was conducted on the sampling basis during
the assurance process.
Data tracing was conducted on headquarters level, and didn't include original
data of all subsidiaries.
The assurance process only involved interviews with certain employees form
relevant departments of headquarters and consultation with relevant documents.
No external stakeholder involved.
STATEMENT OF INDEPENDENCE AND COMPETENCE
The SGS Group of companies is the world leader in inspection, testing and
verification, operating in multiple countries and providing services including
management systems and service certification; quality, environmental, social
and ethical auditing and training; environmental, social and sustainability
report assurance. SGS affirm our independence from Air China, being free from
bias and conflicts of interest with the organisation, its subsidiaries and
stakeholders.
The assurance team was assembled based on their knowledge, experience and
qualifications for this assignment.
FINDINGS AND CONCLUSIONS
ASSURANCE/VERIFICATION OPINION
On the basis of the methodology described and the verification work performed,
the information and data contained within the Report verified is accurate,
reliable, and provides a fair and balanced representation of Air China's
sustainability activities in 2023.
The assurance team is of the opinion that the Report is presented in
accordance with the KPIs disclosure requirements in the appendix C2
of the < Rules
Governing the Listing of Securities on the HKEX>.
Reporting Rules
Materiality
Air China presented the methodology for factors' materiality research and
analysis, via materiality analysis, the environmental, social and governance
significant issues was reported to stakeholders, which could meet the
materiality principle requirement.
Quantitative
Air China conducted the statistics and analysis for KPIs, and reported the
disclosures' impacts and purposes. In the Report some datas were compared with
historiacal years, which could better help stakeholders to evaluate the
effectiveness of management systems and make decisions.
Balance
Air China presented the balance reporting rule in the Report and reported the
environmental, social and governance issues truthfully.
Consistency
Air China disclosed the methodologies with consistency for report content and
data statistics at all levels in the company, in addition, remarks and
interpretations were marked in the Report to assist stakeholders make a clear
comparison.
Findings and recommendations
Good practices and recommendations for ESG report and management process were
described in the internal management report which has been submitted to the
management of Air China for continuous improvement.
Signed:
For and on behalf of SGS-CSTC
David XIN
Sr. Director - Business Assurance
16/F Century Yuhui Mansion, No. 73, Fucheng Road, Beijing, P.R.China
Mar. 28(th) 2024
WWW.SGS.COM
Feedback Collection
Dear reader,
Thanks for reading the 2023 Corporate Social Responsibility (ESG) Report of
Air China Limited, which is the sixteenth social responsibility report
published by Air China. You are welcomed to provide us with your comments and
suggestions on this report for consideration and adoption, enabling us to make
continuous improvement in future report preparation and to improve our
corporate social responsibility management and practice. We look forward to
your valuable comments and suggestions.
1. Do you think the overall report is satisfactory?
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2. Did the report provide all information you are concerned about?
□ Excellent □ Good □ Fair □ Poor
3. Do you think the report has faithfully reflected the performance of Air
China in respect of creating
economic value, social value and environmental value and fulfilling social
responsibility?
□ Excellent □ Good □ Fair □ Poor
4. Can you access the information you are concerned about in a convenient way?
□ Excellent □ Good □ Fair □ Poor
5. Do you think the information disclosed in the report is accurate, clear and
complete?
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6. Do you have any comment or suggestion to our social responsibility work and
social responsibility report in the future?
1 *The safety training data covers Air China, Beijing Airlines, Dalian
Airlines and Inner Mongolia Airlines.
2 Domestic waste data does not include kitchen waste derived from in-flight
meals.
3 The report of hazardous waste emissions only involves Ameco's hazardous
waste emissions.
4 * Passenger complaint, satisfaction, and luggage loss rate data
cover Air China, Beijing Airlines, Dalian Airlines, and Inner Mongolia
Airlines.
5 The total number of employees reported in 2023 is consistent with the
annual report. Compared to 2022, the statistical data this year has included
the personnel from Shandong Aviation Group Corporation.
6 Employee training data in 2023 covers Air China and its major subsidiaries
of Beijing Airlines, Dalian Airlines and Inner Mongolia Airlines.
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